Question

The day Joey was born his grandparents opened an Investment Account that promised to pay 8%...

The day Joey was born his grandparents opened an Investment Account that promised to pay 8% per year with a lump sum of $10,000. In addition, they had been investing $100 per month in the same account. Today Joey turned 18 and his grandparents liquidated this investment account and gave the total proceeds to Joey for his college education.  The amount of total proceeds was:

A. $90,014

B. $43,705

C. $101,239

D. $99,729

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Homework Answers

Answer #1

Calculate the future value as follows:

Therefore, the future value is $43,705.

Therefore, Option B is correct.

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