Question

Brief Exercise G-01 Bramble Altidore invested $8,500 at 8% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Bramble withdrew the accumulated amount of money. Click below to view the factor tables. Table 1. Future Value of 1 Table 2. Future Value of an Annuity of 1 Table 3. Present Value of 1 Table 4. Present Value of an Annuity of 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What amount did Bramble withdraw, assuming the investment earns simple interest? Accumulated amount (b) What amount did Bramble withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) Accumulated amount Click if you would like to show you for this auction.Onon Chow Work

Answer 1

a
Amount invested	8500
Add: Simple interest	6800	=8500*8%*10
Accumulated amount	15300
b
Amount invested	8500
X Future value of 1 factor	2.15892	=(1.08)^10
Accumulated amount	18350.82