Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ais saving for her retirement and contributes $100

Ais saving for her retirement and contributes $1000 to his accountat the end of...Ais...

50.1K

Verified Solution

Question

Accounting

Ais saving for her retirement and contributes $1000 to his accountat the end of every year for 40 years. B is also saving for hisretirement and contributes $950 to his account at the beginning ofevery year for 40 years.
If they have the same amount of money after 40 years, what isthe annual effective interest rate?

Answer & Explanation Solved by verified expert
3.7 Ratings (279 Votes)
Let the annual interest rate be r A contributes 1000 annually for 40 years Henceafter 40 years the value of this deposit can be calculated as under Future value    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingAis saving for her retirement and contributes $1000 to his accountat the end of...Ais saving for her retirement and contributes $1000 to his accountat the end of every year for 40 years. B is also saving for hisretirement and contributes $950 to his account at the beginning ofevery year for 40 years.If they have the same amount of money after 40 years, what isthe annual effective interest rate?

Other questions asked by students

Statistics
1.2K views

A survey of 2,000 American citizens was taken in 2016. The results show that 1,000 people...

Medical Sciences
1.2K views

Pregnancy Questions: A) Where would you expect to find aromatase in the fetal-placental unit? Select one: a. Syncytiotrophoblast cells b....

Accounting
1.2K views

Boeing Corporation is facing an inventory problem. They are essnentially making too many planes, causing them...

Physics
1.2K views

Two batteries A and Bare connected in parallel and a resistance R 10 Q is...

Accounting
1.2K views

Richard Otten is a plumber and has contacted you for some assistance in setting up...

Accounting
1.2K views

Computing Ending Inventory under Dollar-Value LIFO Wheels Inc. accounts for inventory using the dollar-value LIFO...

Accounting
1.2K views

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on...

Accounting
1.2K views

The internal rate of return equals the rate that yields a net present value of...

Finance
1.2K views

v. Components Manufacturing Corporation (CMC) has an all-common-equity capital structure. It has 200,000 shares of...

Accounting
1.2K views

Explain the concept of materiality in financial reporting and its significance in determining the relevance...

Finance
1.2K views

Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and...

Finance
1.2K views

Financial Planning Exercise 6 Life insurance premiums and comparison of types ...