Jill and Bill are the same age. Jill inherits $20,000 when she is 25, and invests it in an account earning 5% annual interest rate, compounded annually. Bill receives a $20,000 bonus at age 35, and then invests it in an account which also earns a 5% annual interest rate, compounded annually. How much more money does Jill have than Bill at age 50?

Question

Daniela Grimes

31 October, 20:28

+1

Answers (1)

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Amaya Navarro · Answer 1

Ok so the formula for this will be A = p (1+r/n) (nt)

Jill ends up with 26,148.54 more than Bill at age 50