Your grandma invested some money 64 years ago into an account earning 4.91% per year, compoundedquarterly. She now has $11804 in her accountRound to the pekny.How much money did your grandam invest 64 years ago? $a.b. How much interest did she earn on the investment? $

Value now (FV) = $ 11804 Interest rate = 4.91% Quarterly interest rate (r) = 4.91%/4 = 1.2275% Period = 64 Years Quarterly period (n) = 64*4 = 256As per formula Money invested = FV/(1+r)n = 11804/(1+0.012275)256 = 11804/1.012275256 = 11804/22.7205524427108 = 519.529621023232 Hence Money invested =$ 519.529621023232 or $ 519.53As per formula Interest earned = Value now - Money invested = 11804-519.529621023232 = 11284.4703789768 Hence Interest earned = $ 11284.4703789768 or $ 11284.47

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Your grandma invested some money 64 years ago into an account earning 4.91% per year, compounded quarterly. She now has $11804 in her account Round to the peny. a. How much money did your grandam invest 64 years ago? $ b. How much interest did she earn on the investment? $

Your grandma invested some money 64 years ago into an account earning 4.91% per year, compounded quarterly. She now has $11804 in her account Round to the peny. a. How much money did your grandam invest 64 years ago? $ b. How much interest did she earn on the investment? $

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 14MCQ

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Your grandma invested some money 64 years ago into an account earning 4.91% per year, compounded
quarterly. She now has $11804 in her account
Round to the pekny.
How much money did your grandam invest 64 years ago? $
a.
b. How much interest did she earn on the investment? $

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