Christie received a total of $1025 from her graduation party. She wants to save this money for a vacation 10 years later. She puts the money into a savings account (Plan A) at a 6% simple interest rate. After the 10 years are over she has accumulated $1640 which covers her vacation expenses. After doing a little research she realizes that she could have earned more money had she invested the money into a different savings plan (Plan B) of 7% interest compounded weekly. How much would Christie have had to save after graduation in Plan B to accumulate the same amount of money that she received in Plan A after 10 years? Round your answer to the nearest cent.
Christie received a total of $1025 from her graduation party. She wants to save this money for a vacation 10 years later. She puts the money into a savings account (Plan A) at a 6% simple interest rate. After the 10 years are over she has accumulated $1640 which covers her vacation expenses. After doing a little research she realizes that she could have earned more money had she invested the money into a different savings plan (Plan B) of 7% interest compounded weekly. How much would Christie have had to save after graduation in Plan B to accumulate the same amount of money that she received in Plan A after 10 years? Round your answer to the nearest cent.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 8E
Related questions
Question
Christie received a total of $1025 from her graduation party. She wants
to save this money for a vacation 10 years later. She puts the money into a
savings account (Plan A) at a 6% simple interest rate. After the 10 years are over
she has accumulated $1640 which covers her vacation expenses. After doing a
little research she realizes that she could have earned more money had she
invested the money into a different savings plan (Plan B) of 7% interest
compounded weekly. How much would Christie have had to save after
graduation in Plan B to accumulate the same amount of money that she received
in Plan A after 10 years? Round your answer to the nearest cent.
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