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25 November, 11:13

Your grandmother invested one lump sum 17 years ago at 4.25 percent interest. Today, she gave you the proceeds of that investment which totaled $5,539.92. How much did your grandmother originally invest

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  1. 25 November, 11:26
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    The lump sum invested was $2,730.30.

    Explanation:

    Giving the following information:

    Invested one lump sum 17 years ago at 4.25 percent interest. Today, the proceeds totaled $5,539.92.

    We need to calculate the original amount that this person invested 17 years ago. We will use the following formula:

    PV = FV / (1+i) ^n

    PV = 5,539.92 / (1.0425) ^17

    PV = $2,730.30
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Home » Business » Your grandmother invested one lump sum 17 years ago at 4.25 percent interest. Today, she gave you the proceeds of that investment which totaled $5,539.92. How much did your grandmother originally invest
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