Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. numerical question how small savings can be big? b

numerical question How small savings can be big? Both Paul and Dave are 18 now...

60.1K

Verified Solution

Question

Finance

image

numerical question How small savings can be big? Both Paul and Dave are 18 now and plan to retire at 65. *Paul Dave *Buy 40 $5 lottery ticket a year *Buy a new car at $25,000 *Eat lunch at Cafeteria for $7 *Start depositing into 401(k) @30 Invest the $200 for 8% a year Buy a used car @$15,000, invest the $10,000 savings @8% Save $5 a day by bringing his own lunch Start depositing $5,000 now How many extra dollars Dave will have at age 65 from investing the $10000 savings at 8% interest rate if he buys a used car instead of a new one? Submit response

Answer & Explanation Solved by verified expert
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

Other questions asked by students