Math problem help PLEASE
The wording is confusing the crap out of me.. If i can just get past this part i can solve the rest.
A young man is the beneficiary of a huge trust fund 15 yrs ago. If they set aside
$250,000, how much will they have set aside in the trust if they can invest the money at
6.5% per year compounded annually?
Would this be an example of a future value with compounded interest, or a present value with compounded interest?
September 21, 2011
2 Comments • Newest first
Thank you so much.
Yes this question left me blank for 2 hours.
It's a future value with compounded interest.
The start of the trust fund (the moment 250,000 was invested in the fund) was in the past. 15 years later, the guy gets the 250,000 + interest.
The use of "have set aside" (present perfect tense) also indicates that they talk about something that started in the past, and is still going on up until now.
The wording is retarded, nonetheless.