Question

For the past 5 years, Frank and Peggy have deposited $15,000 in a retirement account with a simple interest rate of 7%. They plan to continue to make annual deposits for the next 20 years. Explain how their money will grow over time. Note: You do not need to extend their entire savings for 25 years in your explanation. Focus on the earning for the first several years and explain how their money will grow.