Mitch and Bill are both age 75. When Mitch was 23 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 42 years. Bill didn't start saving until he was 46 years old, but for the next 29 years he made annual deposits of $1300. Assume that both accounts earned an average annual return of 4% (compounded once a year). Complete parts (a) through (d) below. A) How much money does Mitch have in his account at age 75? B) How much money does Bill have in his account at age 75. C) Compare the amounts of money that Mitch and Bill deposit into their accounts. Mitch deposits _ in his accunt and Bill deposits _ in his account. D) Draw a onclusion about the parable. Choose the correct answer. -Bill ends up with more money in his account than Mitch because he makes more deposits than Mitch, and each additional deposit will accrue interest each year. -Both Bill and Mith have the same return on investments depsite using different methods of saving. -Mitch ends up with more money in his account despite not haveing deposited as much money as Bill because the interest that is initially accumulated acrues interest throughout the life of the account. -Both Bill and Mitch end up with the same amount of money in their accounts, but Mitch had to deposit less money using his method. It is better to start saving as early as possibel
Mitch and Bill are both age 75. When Mitch was 23 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 42 years. Bill didn't start saving until he was 46 years old, but for the next 29 years he made annual deposits of $1300. Assume that both accounts earned an average annual return of 4% (compounded once a year). Complete parts (a) through (d) below.
A) How much money does Mitch have in his account at age 75?
B) How much money does Bill have in his account at age 75.
C) Compare the amounts of money that Mitch and Bill deposit into their accounts. Mitch deposits _ in his accunt and Bill deposits _ in his account.
D) Draw a onclusion about the parable. Choose the correct answer.
-Bill ends up with more money in his account than Mitch because he makes more deposits than Mitch, and each additional deposit will accrue interest each year.
-Both Bill and Mith have the same return on investments depsite using different methods of saving.
-Mitch ends up with more money in his account despite not haveing deposited as much money as Bill because the interest that is initially accumulated acrues interest throughout the life of the account.
-Both Bill and Mitch end up with the same amount of money in their accounts, but Mitch had to deposit less money using his method. It is better to start saving as early as possibel.
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