Brian Lee is planning to invest $23,000 today in a mutual fund that will provide a return of 11 percent each year. What will be the value of the investment in 10 years?

Answer: the value of the investment would be $65307 in 10 years

Explanation:

Initial amount that Lee invested is $23000 This means that the principal is

P = 23000

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 11%. So

r = 11/100 = 0.11

The duration of the investment is 10 years, So

t = 10

The formula for compound interest is

A = P (1+r/n) ^nt

A = total amount in the account at the end of t years. Therefore

A = 23000 (1+0.11/1) ^1*10

A = 23000 (1.11) ^10 = $65307