Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the text
1 answer:
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Answer:
By the time Michael is 21 years old, Uncle C has saved the most money.
Explanation:
Uncle A = $50 on Michael's first birthday, and same on each birthday
When Michael is 21 years of old, His <em>Uncle A</em> will save = $50 x 21 = $1,050
Uncle B = $15, and $5 more than the previous year. It means 15, 20, 25...
When Michael is 21 years of old, His <em>Uncle B</em> will save = $1,365
Here is the sequence = (15+20+25+30+35+...............+100+105+110+115)
Uncle C = $40, and 5% more than the previous year. It means $40 x 1.05 = $42 in the 2nd year.
When Michael is 21 years of old, His <em>Uncle C</em> will save = $1,428.77 (See the image below to get the proper explanation)
Uncle D = $300. It offers 2.7% interest <em>compounded quarterly</em>. When Michael is 21 years of old, His <em>Uncle D</em> will save = $527.88
Using the Future value, we can determine Uncle D's savings. Hence,
FV = PV ×
FV = $300 ×
FV = $300 × 1.7596
FV = $527.88
