Question

Tom to a job at a grocery store during his summer break. At the end of the summer,

he managed to save $5,500. Tom would like to purchase a new tv for his room, while his
parents have advised him to open a savings account. A new savings account ears 2
percent interest per year. If Tom chooses to purchase the television instead, what is the
marginal cost or marginal benefit after one year? To calculate the marginal cost or
benefit you determine the total benefit of the option that was not taken. Hint: Multiply the
total dollar amount by the annual interest rate in order to determine the interest earned
after one year.

Answer 1

if Tom saves 2 percent of money in saving accounts he will have963,600 at the end of year

Answer 2

the answer is

if Tom saves 2 percent of money in saving accounts he will have963,600 at the end of year