Theo Chocolate has decided to purchase a fleet of climate controlled trucks which will allow them to distribute and deliver thei
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The last part of Question:
How much money will Todd and Jessalyn have in 45 years if they do nothing for the next 10 years, then puts $2400 per year away for the remaining 35 years?
Answer:
Todd and Jessalyn will still have $346,590.23 in 45 years if they do nothing
Explanation:
End of the year deposit, Annuity (A) = $2,400
Interest rate, r = 7.2% = 0.072
Number of years of deposit, n = 35
The future value can be calculated given the formula:
FV = 2400 * 144.413
FV = $346,590.23
Todd and Jessalyn will still have $346,590.23 in 45 years if they do nothing. The money they have saved for 35 years will outlive their 10 years of idleness