Answer:
Instructions are below.
Explanation:
Giving the following information:
Value at 18= $3,996
Interest rate= 8%
To calculate the final value, we need to use the following formula:
FV= PV*(1+i)^n
A) Number of years= 7
FV= 3,996*(1.08^7)= $6,848.44
B) Number of years= 47
FV= 3,996*(1.08^47)= $148,779.12
C) Finally, we need to determine the original investment. We need to isolate the present value from the formula:
PV= FV/(1+i)^n
PV= 3,996/(1.08^18)
PV= $999.995