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Present Value Calculation

Subject Category
Corporate Finance

Question Details

Your great aunt Matilda put some money in an account for you on the day you were born. This account pays 8% interest per year. On your21st birthday the account balance was $5,033.83.

The amount of money that your great aunt Matilda originally put in the account is closest to:

a. $1,000

b. $600

c. $1,200

d. $800

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