Answer:
By the time Michael is 21 years old, Uncle C has saved the most money.
Explanation:
Uncle A = $50 on Michael's first birthday, and same on each birthday
When Michael is 21 years of old, His Uncle A will save = $50 x 21 = $1,050
Uncle B = $15, and $5 more than the previous year. It means 15, 20, 25...
When Michael is 21 years of old, His Uncle B will save = $1,365
Here is the sequence = (15+20+25+30+35+...............+100+105+110+115)
Uncle C = $40, and 5% more than the previous year. It means $40 x 1.05 = $42 in the 2nd year.
When Michael is 21 years of old, His Uncle C will save = $1,428.77 (See the image below to get the proper explanation)
Uncle D = $300. It offers 2.7% interest compounded quarterly. When Michael is 21 years of old, His Uncle D will save = $527.88
Using the Future value, we can determine Uncle D's savings. Hence,
FV = PV × [tex](1 + \frac{i}{m} )^{n*m}[/tex]
FV = $300 × [tex](1 + \frac{0.027}{4} )^{21*4}[/tex]
FV = $300 × 1.7596
FV = $527.88
