Account A: $300 monthly deposits, interest rate is 4.2%. Account B: $250 monthly deposits, interest rate is 5.1%. Which account
will have a greater value at the end of 15 years?
a. Account A will be greater than Account B.
b. Account B will be greater because the interest rate is higher.
c. They will be worth about the same.
d. Not enough information.
1 answer:
Answer:
A
Step-by-step explanation:
We have to determine the future value of the annuity to determine which account has a greater value
Future value = Amount x annuity factor
annuity factor = Annuity factor = {[(1+r)^n] - 1} / r
Account A = 300 x[ (1.042)^15 - 1 ] / 0.042 = $6097.14
Account B = 250 x[ (1.051)^15 - 1 ] / 0.051 = $5435,42
Account A will be greater
You might be interested in
Answer:
4h^2-6h-7
Step-by-step explanation:
Answer:
No
Step-by-step explanation:
it doesnt add up to 180 degrees
Answer:
C
Step-by-step explanation:
When cut in half each side is the same as the other
The option is
A . Age at Death
40 - 50
50 - 60
60 - 70
70 - 80
80 - 90
90 - 100
Answer:
0.75
Step-by-step explanation: 2 weeks late >_<
