recent high school graduate received $900 in gifts of cash from friends and relatives. In addition, she received three scholarships in the amounts of $350, $800, and $1300. If she takes all her gift and scholarship money and invests it in a 24-month CD paying 4% interest compounded daily (use n=360), how much will the graduate have when she cashes in the CD at the end of the 24-months? The graduate will have how much money when she cashes in the CD.
recent high school graduate received $900 in gifts of cash from friends and relatives. In addition, she received three scholarships in the amounts of $350, $800, and $1300. If she takes all her gift and scholarship money and invests it in a 24-month CD paying 4% interest compounded daily (use n=360), how much will the graduate have when she cashes in the CD at the end of the 24-months? The graduate will have how much money when she cashes in the CD.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 52P
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A recent high school graduate received $900 in gifts of cash from friends and relatives. In addition, she received three scholarships in the amounts of $350, $800, and $1300. If she takes all her gift and scholarship money and invests it in a 24-month CD paying 4% interest compounded daily (use n=360), how much will the graduate have when she cashes in the CD at the end of the 24-months?
The graduate will have how much money when she cashes in the CD.
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Step 1 Introduction
In this question one has to find out the future value of all the cash flows.
Future value is the value of an asset in the future.
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