Question
In two (2) years, Alice will receive a 21st birthday present from her parents in a lumpsum of money. She plans to put that amount
In two (2) years, Alice will receive a 21st birthday present from her parents in a lumpsum of money.
She plans to put that amount of money into an investment and estimates that given the rate of interest is 12%, she can earn $7,500 in 7 years' time.
How much money will Alice’s parent give her in two (2) years' time?
- Is this question about finding the present value or the future value?
- Perform calculations to find out how much money Alice will receive for her birthday present?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
