Louise will earn equal dollar amount of interest every year

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Reference no: EM131573266

This morning, Louise opened a savings account that will earn 2.2 percent interest, compounded annually. After five years, her savings account will be worth $5,600. Assume Louise will not make any withdrawals or additional deposits. Given this, which one of the following statements is false? Louise deposited less than $5,600 this morning. The present value of Louise's account is less than $5,600. Louise could have deposited less money and still had $5,600 in five years if she could have earned more than 2.2 percent interest. Louise would have had to deposit more money to have $5,600 in five years if she were to earn less than 2.2 percent interest. Louise will earn an equal dollar amount of interest every year for the next five years.

Reference no: EM131573266

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