Your friend’s grandfather put some money in an investment account for her on the day she was born. She is now 18 years old and can withdraw the money for the first time. The account currently has $4,200 in it and pays an interest rate of 12% per annum.
Assume end of the year cash flows and show all calculations. (Hint: Use a timeline to visualize the cash flows.) a) How much money would be in the account if she left the money there until her 25th birthday? b) How much money would be in the account if she left the money there until her 65 birthday? c) How much money did her grandfather originally put into the account when she was born? Get Finance homework help today
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