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Future value. ??Jack and Jill are saving for a rainy day and decide to put ?$60 away...

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Finance

Future value.

??Jack and Jill are saving for a rainy day and decide to put?$60 away in their local bank every year for the next 20 years. Thelocal? Up-the-Hill Bank will pay them 6?% on their account.

a.?If Jack and Jill put the money in the account faithfully atthe end of every? year, how much will they have in it at the end of20 ?years?

b. ? Unfortunately, Jack had an accident in which he sustainedhead injuries after only 10 years of savings. The medical bill hascome to $700. Is there enough in the? rainy-day fund to cover?it?

Answer & Explanation Solved by verified expert
3.8 Ratings (381 Votes)
a Information provided Yearly saving 60 Time 20 years Interest rate 6 The money in the account at the end of 20 years is calculated by computing the future value Enter the below in a    See Answer
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Transcribed Image Text

Future value.??Jack and Jill are saving for a rainy day and decide to put?$60 away in their local bank every year for the next 20 years. Thelocal? Up-the-Hill Bank will pay them 6?% on their account.a.?If Jack and Jill put the money in the account faithfully atthe end of every? year, how much will they have in it at the end of20 ?years?b. ? Unfortunately, Jack had an accident in which he sustainedhead injuries after only 10 years of savings. The medical bill hascome to $700. Is there enough in the? rainy-day fund to cover?it?

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