Ask Question
BusinessBusiness
15 August, 14:59

You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money will you have in 31 years

+2
Answers (1)
  1. 15 August, 18:09
    0
    Money in 31 years will be = $1,648,641.73

    Explanation:

    As per the given dа ta:

    Inherit Money (PV) = $114,000

    Interest rate (i) = 9% p. a (Compounding is done annually as said in the question)

    Holding period (n) = 31 years.

    Money to have in is the Future value (FV) = ?

    We can use following time value formula to calculate the future value -

    FV = PV * (1 + i) ^ n

    putting the values:

    FV = 114,000 * (1 + 0.09) ^ 31

    FV = 114,000 * (14.461769531353)

    Thus,

    Future Value is = $1,648,641.73
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Santos Co. is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and anticipates $71,000 in cash receipts and $114,000 in cash disbursements during February.
Answers (1)
How much is one bottle of water? Case of 20 water bottles for $15.00
Answers (2)
A software company is working on a new project for a mutual fund organization. The client expects the scope of the project to be flexible; their goals are evolving and they needed to test the product as and when components are finished.
Answers (1)
Which government agencies designed a $700-billion bailout package and convinced Congress that a rapid response was needed to avert a worldwide depression in 2008?
Answers (1)
Which of the following is an example of both a capital market and a primary market transaction? A. Ford Motor Company sells a new issue of common stock to raise funds through a public offering. B. The U. S.
Answers (1)
New Questions in Business
In which of the following circumstances are competitive pressures associated with the bargaining power of buyers relatively moderate-to-weak? The supply of soccer balls increases during the World Cup season.
Answers (1)
Amanda, a business analyst, presents false research findings to her manager to prove that the desired results have been achieved and to get appreciation for her work. Which level of moral development is illustrated in the given scenario? a.
Answers (1)
Fun, Incorporated, a major gaming software company, is experiencing conflict between theyoung Internet-savvy employees who design the games and the older, less computer-literate executives who run the company.
Answers (1)
Which of the following is not a valid FICO credit score? A. 575 B. 775 C. 875 D. 675
Answers (2)
Which of the following is an example of the operations concerns of a business plan? A. Working out a pricing scheme B. Contacting potential investors C. Deciding who will do what and when D. Thinking out your mission statement
Answers (1)
Home » Business » You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money will you have in 31 years
Sign Up Forgot Password?