(FV) In 1880, five aboriginal trackers were each promised the equivalent of 100 Australian dollars for helping to capture the notorious outlaw Ned Kelly. One hundred and thirteen years later, the granddaughters of two of the trackers claimed that this reward had not been paid. If the interest rate over this period averaged about 4.5%, how much would the A$100 have accumulated to?
To determine: The accumulated income of $100 at 4.5%.
Answer to Problem 1SQ
The accumulated income of $100 at 4.5% is $14,459.09.
Explanation of Solution
Determine the accumulated income
Using a excel spreadsheet and excel function =FV, the accumulated income is determined as $14,459.09.
Excel Spreadsheet:
Therefore the accumulated income of $100 at 4.5% is $14,459.09.
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Chapter 2 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
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