Question: Grand Opening Bank is offering a one time investment opportunity for
Grand Opening Bank is offering a one-time investment opportunity for its new customers. A customer opening a new checking account can buy a special savings bond for $100 today which the bank will compound at 7.5% for the next twenty years. The savings bond must be held for at least five years but can then be cashed in at the end of any year starting with year five. What is the value of the bond at each cash-in date up through twenty years? (Use an Excel Spreadsheet to solve this problem.)
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