Moving to another question will save this response Question 3 of 22 Question 3 10 points...

Question

Question

business finance

Answer 1

Answer #1

Value of her deposit 5 years later = PV x (1 + r)^n = 5,000 x (1 + 7%)^5 = $7,012.76

You need to deposit an amount = FV / (1 + r)^n = 7,012.76 / (1 + 8.75%)^5 = $4,610.44

Hence, you need to deposit 4,610.44 - 5,000 = -389.56 amount less than your sister.

Hence, a is correct.

Answer 2

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