In two (2) years, Alice will receive a 21st birthday present from her parents in a lumpsum

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In two (2) years, Alice will receive a 21st birthday present from her parents in a lumpsum of money.

She plans to put that amount of money into an investment and estimates that given the rate of interest is 12%, she can earn $7,500 in 7 years' time.

How much money will Alice’s parent give her in two (2) years' time?

Is this question about finding the present value or the future value?
Perform calculations to find out how much money Alice will receive for her birthday present?

Related Book For answer-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078025655

7th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old

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Posted Date: Feb 16, 2024 10:49 PM

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In two (2) years, Alice will receive a 21st birthday present from her parents in a lumpsum

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