Answer:

A. $11,969.3

B. $1,195,909.1

Explanation:

a. Calculation for How much was each granddaughter entitled to if the interest rate was 4%

First step is to calculate the Time period

Time period=2002-1880

Time period=122 years

Now let calculate the Future value using this formula

Future value=PV(1+r)^122 years

Let plug in the formula

Future value=$100(1+0.04)^122 years

Future value=$100(1.04)^122 years

Future value=$11,969.3

Therefore How much was each granddaughter entitled to if the interest rate was 4% will be $11,969.3

b. Calculation for How much was each entitled to if the interest rate was 8%

First step is to calculate the Time period

Time period=2002-1880

Time period=122 years

Now let calculate the Future value using this formula

Future value=PV(1+r)^122 years

Let plug in the formula

Future value=$100(1+0.08)^122 years

Future value=$100(1.08)^122 years

Future value=$1,195,909.1

Therefore How much was each entitled to if the interest rate was 8% will be $1,195,909.1