Mrs Vandenberg Has Just Deposited $5,000 in Each of Three

question 113

Short Answer

Mrs. Vandenberg has just deposited $5,000 in each of three savings plans for her grandchildren. They will have access to the accumulated funds on their 19^th birthdays. Their current ages are 12 years, 7 months (Donna); 10 years, 3 months (Tim); and 7 years, 11 months (Gary). If the plans earn 8% compounded monthly, what amount will each grandchild receive at age 19?

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Definitions:

Cost-Of-Living Increases

Adjustments to salaries or wages to offset the impact of inflation on purchasing power.

Job Evaluation

A systematic process used to assess the relative worth of jobs within an organization for the purpose of establishing fair compensation levels.

Private Sector

Part of the economy that is run by individuals and companies for profit and is not directly controlled by the state.