Mitch and Bill are both age 75. When Mitch was 25 years old, he began deposited...

Mitch and Bill are both age 75. When Mitch was 25 years old, he began deposited $1400 per year into a savings account. He made deposits for the first 10 years, and which point he was forced to stop making deposits. However he left his money in the account, where it continued to earn interest for the next 40 years. Bill didn’t start saving until he was 45 years old, but for the next 30 years he made annual deposit of $1400. Assume that both accounts earned an average annual return of 6% compounded once a year. Complete parts a through d below.

A. how much money does Mitch have in his account at age 75?

( round to the nearest cent as needed )

B. how much money does Bill have in his account at age of 75?

C. compare the amounts of money that Mitch and Bill deposit into their accounts

D. draw a conclusion about this parable

Expert Solution

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Colby Messinger answered 2 years ago

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Mitch and Bill are both age 75. When Mitch was 25 years old, he began deposited...

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