Solved Question: To what amount will the following investment accumulate?

Get premium Solution to all your Homework Assignments exclusively on writerkingdom. We have CFA/MBA writers to provide customized model answers to your every academic problem

Compare

Description

Question:

To what amount will the following investment accumulate? $16,999, invested today for 7 years at 3.34 percent, compounded monthly

Answer:

Compound interest formula: A = P (1 + r/n) (nt)

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

A = 16999*(1 + 3.34/1200)^(7*12) = 21559.53

Reviews

There are no reviews yet.

Be the first to review “Solved Question: To what amount will the following investment accumulate?”

Your email address will not be published. Required fields are marked *