Your grandfather put some money into an account for you on the day you were born....

Question

Question

Answer 1

Answer #1

a. Future Value = Present Value * ( 1+ rate of Interest)^Time

= $ 9283* (1+8%)^(25-18)

= $ 15,909

b.

Future Value = Present Value * ( 1+ rate of Interest)^Time

= $ 9283* (1+8%)^(65-18)

= $ 345,625

c. Future Value = Present Value * ( 1+ rate of Interest)^Time

$ 9283 = Present Value * ( 1+ 8%)^ 18

$ 9283 = Present Value *3.996019499

Present Value = $ 9283 / 3.996019499

= $ 2,323

Answer 2

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