Mitch and Bill are both age 75. When Mitch was 22
years old, he began depositing $1500 per year into a savings
account. He made deposits for the first 10 years, at which
point he was forced to stop making deposits. However, he left
his money in the account, where it continued to earn interest
for the next 43 years. Bill didn't start saving until he was
45 years old, but for the next 30 years he made annual
deposits of $1500. Assume that both accounts earned an average
annual return of 6% (compounded once a year). Complete
parts (a) through (d) below.
a. How much money does Mitch have in his account at
age 75?
At age 75, Mitch has $_____ in his account. (Round to
the nearest cent as needed.)
b. How much money does Bill have in his account at
age 75?
At age 75, Bill has $_____ in his account. (Round to the
nearest cent as needed.)
c. Compare the amounts of money that Mitch and Bill deposit into
their accounts.
Mitch deposits $_____ in his account and Bill deposits $_____
in his account.