In 1880, five aboriginal trackers were each promised the equivalent of 50 Australian dollars for helping to capture the notorious outlaw Ned Kelley. In 1994, the granddaughters of two of the trackers claimed that this reward had not been paid. The Victorian prime minister stated that if this was true, the government would be happy to pay the $50. However, the granddaughters also claimed that they were entitled to compound interest. a. How much was each granddaughter entitled to if the interest rate was 3%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value 2,000.99 Australian dollars b. How much was each entitled to if the interest rate was 6%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value 70,712.94 Australian dollars
In 1880, five aboriginal trackers were each promised the equivalent of 50 Australian dollars for helping to capture the notorious outlaw Ned Kelley. In 1994, the granddaughters of two of the trackers claimed that this reward had not been paid. The Victorian prime minister stated that if this was true, the government would be happy to pay the $50. However, the granddaughters also claimed that they were entitled to compound interest. a. How much was each granddaughter entitled to if the interest rate was 3%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value 2,000.99 Australian dollars b. How much was each entitled to if the interest rate was 6%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value 70,712.94 Australian dollars
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:In 1880, five aboriginal trackers were each promised the equivalent of 50 Australian dollars for helping to capture the notorious outlaw
Ned Kelley. In 1994, the granddaughters of two of the trackers claimed that this reward had not been paid. The Victorian prime minister
stated that if this was true, the government would be happy to pay the $50. However, the granddaughters also claimed that they were
entitled to compound interest.
a. How much was each granddaughter entitled to if the interest rate was 3%?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Future value
2,000.99 Australian dollars
b. How much was each entitled to if the interest rate was 6%?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Future value
70,712.94 Australian dollars
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