Get Started Early! Mitch and Bill are the same age. When Mitch is 25 years old, he begins depositing $1000 per year into a savings account. He makes deposits for 10 years, at which point he is forced to stop making deposits. However, he leaves his money in the account for the next 40 years (wheredt continues to earn interest). Bill doesn't start saving until he is 35 years old, but for the next 40 years he makes annual deposits of $1000. Assume that both accounts earn interest at an annual rate of 7% and interest in both accounts is compounded once a year.
a. How much money does Mitch have in his account at age 75?
b. How much money does Bill have in his account at age 75?
c. Compare the amounts of money that Mitch and Bill deposit into their accounts.
d. Write a paragraph summarizing your conclusions about this parable.
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