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How much money will she have at the end of eight years

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Q1. Present value is used extensively by managers who are reviewing proposed projects. Why is this so and how does the present value of a cash flow assist management in making these business decisions?

Q2. a. Gouldy invests $4,500 in an account that pays 4% simple interest. How much money will she have at the end of eight years?

b. Gouldy then goes on to invests $3,000 in an account that pays 5% simple interest. How much more could she have earned over a 7-year period if the interest had compounded annually?

Reference no: EM132817630

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