Consider the two savings plans below

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Question description

Consider the two savings plans below. Compared the balance in each plan after 7 years. Which person deposited more money in the plan? Which of the two investments strategies is better?

Yolanda deposites $600 per month in an account with an APR of 6% while Zach deposits $7,200 at the end of each year in an account with an APR of 6%

Q

What is the balance in Yolanda's savings plan after 7 years?

 

What is the balance in Zack's savings plan after 7 years?

 

Which person deposited more money in the plan?

a) They deposited the same amount of money in their savings plans

b) Yolanda deposited more money in her savings plan.

c) Zach deposited more money in her savings plan

 

Which of the two investments strategies was better?

a) Neither plan was better than the other because both plans yield the same accumulated savings plan balance after 7 years

b) Yolanda's investment strategy was better because she had a larger accumulated savings plan balance after 7 years.

c) Zach's investment strategy was better because she had a larger accumulated savings plan balance after 7 years.

 


 

Tutor Answer

(Top Tutor) Daniel C.
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