QUESTION BELOW

Question

You would like to have $74,000 available in 15 years. There are two options. Account A has a rate of 4.5% compounded once a year. Account B has a rate of 4% compounded daily. How much would you have to deposit in each account to reach your goal? Assume 365 days in a year.

 

Round up to next dollar as needed.

 

In other words, how much must you invest in Account A and B?

Answer 1

A,

74000 = p(1 + 0.045)¹⁵

B.

74000 = p(1 + 0.04/365)^(365)(15)

 

Can you calculate?