The Grandparents, at the birth of their granddaughter, decide to set up a savings account in her name with an initial deposit of $5,000. No other deposits are ever made into the account. Assume the account yields 8.75% interest per year.

Question: If the account is left alone, how much money will it contain when the “little” granddaughter decides to cash it all in for her retirement at age 62? (Remember that this is growing exponentially)

Answer rating: 100% (QA)

Initial deposit P 5000 Int... View the full answer