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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35.

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