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Question - Mary hopes to accumulate an amount of $75,000.00 by the end of Year 10. Mary's Grand-Mother - Sally - gave Mary $10,000.00 on Day I of Year I as a birthday present.
On Day I of Year II, Mary invested the $10,000.00 at a rate of 6% for each year from Year II to the end of Year 10.
Required -
(a) Will Mary be successful in achieving her goal of $75,000.00 by the end of Year 10? Why or why not, explain your answer.
(b) If Mary is not successful under (a), at what rate of interest would Mary need to invest the $10,000 on Day I of Year II in order to achieve her goal of $75,000 at the end of Year 10?
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