Compute the value of the fund, Accounting Basics

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Compute the value of the fund

Problem:

Your brother, who is 6 years old, just received a trust fund that will be worth $25,000 when he is 21 years old.

Requirement:

Question: If the fund earns 10 percent interest compounded annually, what is the value of the fund today?

a. $104,602

b. $6,575

c. $5,975

d. $6,875

Note: Provide support for your rationale.

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Accounting Basics: Compute the value of the fund

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Accounting Basics: Compute the value of the fund

Reference No:- TGS0891959

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Request for Solution File

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Accounting Basics: Compute the value of the fund

Reference No:- TGS0891959

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