Is there enough in the rainy-day fund to cover it

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Reference no: EM131844215

Jack and Jill are saving for a rainy day and decide to put $60 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them

10% on their account.

a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?

b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $1,000

Is there enough in the rainy-day fund to cover it?

Reference no: EM131844215

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