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Nancy invested $750 per month in a 401k that earned 6% annual return for 30 years. Alex
invested $1,500 per month in a 401k that also earned 6% annual return, but for 15 years. Which
of the following would be true?
Nancy's balance would be greater than Alex's in the end.
O Nancy's balance is $4,308 and Alex's balance is $3,595.
O Alex's balance would be greater than Nancy's in the end.
The investment and balance would be the same in the end.

Respuesta :

mhanifa

Answer:

  • A and B

Step-by-step explanation:

Nancy's balance:

  • 750*(1 + 0.06)^30 = $4308 rounded to whole number

Alex's balance:

  • 1500*(1 + 0.06)^15 = $3595 rounded to whole number

Options:

A. Nancy's balance would be greater than Alex's in the end.

  • Correct

B. Nancy's balance is $4,308 and Alex's balance is $3,595.

  • Correct

C. Alex's balance would be greater than Nancy's in the end.

  • Incorrect

D. The investment and balance would be the same in the end.

  • Incorrect

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