Twins Kate and Allie will be going to college in 15 years. Their parents have decided...

Twins Kate and Allie will be going to college in 15 years. Their parents have decided that Dad will start a savings fund for Kate. He will deposit $2,000 into an account the first of each year. That account earns 7% and interest is compounded annually. Their mother will also deposit $2,000 into an account for Allie, but she is going to make those deposits at the end of each quarter and the account pays 7.5% compounded quarterly. Who will have more in her college fund? EXCEL function: Input: Results:

Expert Solution

Hence, Allie would be having more in her college fund.

Formulae

Formulae as above

jeff jeffy answered 2 years ago

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