Answer:
Both their investments will reach a similar value in 32 years, 9 months and 8 days. Both accounts will have exactly $5,606.
Explanation:
Original investment: $800 at 6.12% $1,600 at 3.9%
future value 10 years $1,449 $2,346
future value 20 years $2,624 $3,439
future value 30 years $4,753 $5,042
future value 31 years $5,044 $5,238
future value 32 years $5,353 $5,442
future value 33 years $5,681 $5,655
It will take over 32 years for both investments to match their amounts.
to determine the approximate month we start with the future value in 32 years:
$5,353 $5,442
future value in 6 months $5,517 $5,548
future value in 9 months $5,599 $5,601
future value in 9 months
and 5 days $5,603 $5,604
future value in 9 months
and 8 days <u>$5,606</u> <u>$5,606</u>
