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QUESTION 22 "Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent...

QUESTION 22

  1. "Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, Aunt Tillie will have enough in 7 years to cover the obligation."

    True

    False

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Answer #1
Amount deposited 33000
X FV factor 1.94872 =(1.10)^7
Future value in 7 years 64308
False, Aunt Tillie will only have $64308 in 7 years to cover the obligation.
False is the correct option
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