The annual rate of interest in the savings account

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Reference no: EM131300313

Aaron, Bradford and Charles have been friends since childhood. At the high school graduation ceremony they decided to make a bet about who would be the fastest to save $50,000. Exactly 10 years later they met at the first high school reunion. Which one(s) of the three friends, if any, was able to save $50,000 by that time? Calculate and explain in words all calculations. Additional information: Starting the high school graduation day, Aaron has been depositing $320 at the end of each month. Bradford went to college and so he started saving only once he started his first job, which was 5 years after the high school graduation. Since that time he was able to put $8,000 into his savings account at the beginning of each year. Charles, in turn, has been saving $1,500 at the end of each six months, starting the graduation day. The annual rate of interest in the savings account for all three friends is 6 percent, compounded monthly. Show each step and explain each step.

Reference no: EM131300313

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