Investor A adds $6,000 to her savings on the first day of each year. Investor B adds $6,000 to his savings on the last day of each year. They both earn a 10 percent rate of return. What is the

Investor A adds $6,000 to her savings on the first day of each year. Investor B adds $6,000 to his savings on the last day of each year. They both earn a 10 percent rate of return. What is the difference in their savings account balances at the end of thirty years? Show your detail work. 

Transcribed Image Text:

You are going to receive $10,000 today. In addition, you will receive $15,000 one year from today and $25,000 two years from today. You plan on saving all of this money and investing it for your retirement. If you can earn an average of 10 percent on your investment investments, how much will you have in her account if you retire 30 years from today.

• Expert Answer

Solution Answer 1 A Future value of annuity due 1 rate Annuity 1 rate time period 1 rate 1 10 6000 1 View the full answer