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Johnson has received $5,000 as a gift from his aunt today. He is required to open a savings account today and deposit the money in
Johnson has received $5,000 as a gift from his aunt today. He is required to open a savings account today and deposit the money in it. He will not be able to withdraw any money from this account before his graduation from college. Johnson plans on withdrawing all the money from the account on his graduation. He expects that he will graduate in three years. If we assume that the interest rate remains the same on his deposit, what will happen to the future value of this gift if he speeds up his graduation by 1 year (that is, he graduates two years from today)? Multiple Choice cannot be determined from the information provided remains constant O decreases becomes negative O increases
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