When michael is born, four uncles decide to save money for his future in different ways: uncle a: he deposits $50 on michael's first birthday, and every subsequent birthday. uncle b: he deposits $15 on michael's first birthday, and every subsequent birthday he deposits $5 more than the previous year. uncle c: he deposits $40 on michael's first birthday, and every subsequent birthday he deposits 5% more than the previous year. uncle d: at michael's birth he deposits $300 in a savings account which offers 2.7% interest compounded quarterly. by the time michael is 21 years old, which uncle has saved the most money for him?

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 ×

FV = $300 ×

FV = $300 × 1.7596

FV = $527.88

1:  Funding: The most important element in starting a business is funding. Even the most basic home business incurs a multitude of startup costs, including registering a business name, obtaining a business telephone line and printing business cards.Financial resources can be obtained from a variety of sources, the easiest being from the personal accounts of the company’s founder. Alternatively, loans and lines of credit may be granted from financial institutions, friends and relatives, private investors and even the United States government. In addition, many grants are offered from private and public sources to entrepreneurs of all demographics and personal situations.

2: Employees: The success of an organization is heavily reliant on the talent and strength of its employees. The hiring of experienced professionals with track records of excellence within their area of expertise ensures that the mission and goals of the company will be carried out efficiently and with competence. Strong team members can be recruited using a variety of methods. Staffing agencies and executive search firms specialize in placing talent of all levels within every industry. An alternative is to find employees through referrals from individuals whose judgment is trusted.

3: Industry Know How: Perhaps the greatest thing an entrepreneur can do when establishing a new business is to gain as much education possible. By understanding her competition and gaining an in-depth knowledge of her industry, she will be better prepared to make smarter decisions regarding the direction of her firm. Educational resources can be found through professional trade associations that are geared toward her industry, her local chamber of commerce as well as the Small Business Administration.

4: Premises and Equipment: Whether a small home business or a retail operation with multiple locations, every organization must have the appropriate physical resources to survive. This includes a proper work space, working telephone line, adequate information systems and effective marketing materials. This aspect of business planning can be one of the costliest. As such, it is important for an entrepreneur to realistically assess his needs before making any purchases.

5: Support Systems: Starting a business can be an extremely stressful endeavor for an entrepreneur to undertake. To maintain her sanity as well as stay motivated, it is important she have a support team that can give her inspirations and guidance as needed. This team may be composed of friends and family as well as a mentor or professional group.