Y our great aunt put some money in an account for you on the day you were born. This accountpays 8% interest per year. On your 21st birthday the account balance was $5033.83.YourQuestions:1) What is the amount of money that your great aunt originally put in the account?2) What is the amount of money that would be in the account if you left the money there untilyour 65th birthday?

Deposited of money at time of born is a present value and 5,033.83 is a future value of investment…

Y our great aunt put some money in an account for you on the day you were born. This account pays 8% interest per year. On your 21st birthday the account balance was $5033.83. Questions: 1) What is the amount of money that your great aunt originally put in the account? 2) What is the amount of money that would be in the account if you left the money there until your 65th birthday?

Y our great aunt put some money in an account for you on the day you were born. This account pays 8% interest per year. On your 21st birthday the account balance was $5033.83. Questions: 1) What is the amount of money that your great aunt originally put in the account? 2) What is the amount of money that would be in the account if you left the money there until your 65th birthday?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 14P

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