Consider the two savings plans below. Compare the balances in each year after 14 years. Which person deposited more money in the

Question

2 years ago

6

Consider the two savings plans below. Compare the balances in each year after 14 years. Which person deposited more money in the

plan? Which of the two investment strategies is better?
Yolanda deposits $250 per month in an account with an APR of 4%, while Zach deposits $3000 at the end of each year in an account with an APR of 4%

Mathematics

1 answer:

zhuklara [117] · Answer 1 · 2023-05-24T06:38:46+03:00

The balance in Yolanda's saving plan after 14 years is; $9,455.36

<h3>How to calculate future value?</h3>

We want to find the balance in Yolanda's saving plan after 14 years.

For Yolanda;

PV = 0

PMT = 250

i% = 4%/12 = 0.33%

N = 14 yrs * 12 = 168

FV = ?

For Zach:

PV = 0

PMT = $3300

i% = 4%

N = 14 yrs

FV = ?

From online future value calculator, we have;

Yolanda FV = $9,455.36

Zach FV = $47,204.19

Read more about Future Value at; brainly.com/question/24703884

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