Huey, Dewey, and Louie create Nest Eggs Huey, Dewey, and Louie are triplets. They are 25 years old and are trying to set up savings plans for themselves. They plan to retire at age 65 . They each have different ideas. All APR's are 5%. Huey's plan: Plans to start now and deposit $100 each month into the account and leave the money in the bank until he retires at age 65 . Dewey's plan: Plans to start now but Dewey doesn't want to be bothered with monthly payments like Huey. He wants to hang onto his money throughout the year, and then make just one payment at the end of each year. He'll deposit $1200 per year in his bank. He figures that at retirement his Nest Egg will be the same size as Huey's because each year. he's deposited just as much. Louie's plan: Louie's a party guy! He wants to have fun with his money while he's young! He decides he'll put off saving until he's 45, at which time he'll start putting in twice as much per month as Huey ($200). He figures with this plan, his Nest Egg ought to be the same size as Huey's when they retire at age 65 . (Twice as much for 1/2 the time ought to be the same, right?) 7. (5 pts) Louie would also like to have the same amount of money as Huey when he retires. How much would Louie's monthly deposit have to be for him to end up with as much money as Huey? N=I%=PV=PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 8. (6 pts) What are the advantages/disadvantages of each brother's savings plan? Answers should be written in complete sentences with proper grammar and punctuation. Huey: - Advantage(s): - Disadvantage(s): Huey, Dewey, and Louie create Nest Eggs Huey, Dewey, and Louie are triplets. They are 25 years old and are trying to set up savings plans for themselves. They plan to retire at age 65 . They each have different ideas. All APR's are 5%. Huey's plan: Plans to start now and deposit $100 each month into the account and leave the money in the bank until he retires at age 65 . Dewey's plan: Plans to start now but Dewey doesn't want to be bothered with monthly payments like Huey. He wants to hang onto his money throughout the year, and then make just one payment at the end of each year. He'll deposit $1200 per year in his bank. He figures that at retirement his Nest Egg will be the same size as Huey's because each year. he's deposited just as much. Louie's plan: Louie's a party guy! He wants to have fun with his money while he's young! He decides he'll put off saving until he's 45, at which time he'll start putting in twice as much per month as Huey ($200). He figures with this plan, his Nest Egg ought to be the same size as Huey's when they retire at age 65 . (Twice as much for 1/2 the time ought to be the same, right?) 7. (5 pts) Louie would also like to have the same amount of money as Huey when he retires. How much would Louie's monthly deposit have to be for him to end up with as much money as Huey? N=I%=PV=PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 8. (6 pts) What are the advantages/disadvantages of each brother's savings plan? Answers should be written in complete sentences with proper grammar and punctuation. Huey: - Advantage(s): - Disadvantage(s)
