What is the balance of Gabriella’s $3000 after 8 years? Mrs.Galicia gave her sisters $3000 each to invest for future higher education plans. The investment will last 8years.The table below shows what each sister did with their investment and how it changed over the course of the 8years:ChildPerformance of Investments Over the Course of the CompetitionMichelle$2000 earned 3.5% annual interest compounded monthly$1000 grew, compounded continuously at rate of 1.8% annualy$2500 earned 1.2% annual interest compounded quarterlyKristen$500 increase in value at a rate of 2.25% compounded quarterlyGabriella$3000 grew, compounded continuously at rate of 2.2% annuallyJudy$1050 earned exponentially at a rate of 2.5% annually$1950 earned 2.8% annual interest compounded biannually (twice a year)

Here, Present value = $3,000 Rate of interest = 2.2% Time in years = 8 years Frequency =…

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What is the balance of Gabriella’s $3000 after 8 years?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

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ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

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Question

What is the balance of Gabriella’s $3000 after 8 years?

Mrs.Galicia gave her sisters $3000 each to invest for future higher education plans. The investment will last 8
years.
The table below shows what each sister did with their investment and how it changed over the course of the 8
years:
Child
Performance of Investments Over the Course of the Competition
Michelle
$2000 earned 3.5% annual interest compounded monthly
$1000 grew, compounded continuously at rate of 1.8% annualy
$2500 earned 1.2% annual interest compounded quarterly
Kristen
$500 increase in value at a rate of 2.25% compounded quarterly
Gabriella
$3000 grew, compounded continuously at rate of 2.2% annually
Judy
$1050 earned exponentially at a rate of 2.5% annually
$1950 earned 2.8% annual interest compounded biannually (twice a year)

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