3.10 What will be the amount accumulated by each of these present investments? (a) $5,000 in 5 years at 7% compounded annually. (b) $7,250 in 15 years at 9% compounded annually. (c) $9,000 in 33 years at 6% compounded annually. (d) $12,000 in 8 years at 5.5% compounded annually.

1) FV = 7012.76

2) FV = 26408

3) FV = =61565.31

4) FV = 18416.24

Explanation:

The formula used for calculation of future value for given present investment is given as

FV = PV (1 + I) ⁿ

1) for PV = 5000, n = 5 year, I = 7%

FV = 5000 * (1.07) ^5

FV = 7012.76

2) for PV = 7200, n = 15 year, I = 9%

FV = 7250 * (1.09) ^15

FV = 26408

3) for PV = 9000, n = 33 year, I = 6%

FV = 9000 * (1.06) ^33

FV = =61565.31

4) for PV = 12000, n = 8 year, I = 5.5%

FV = 12000 * (1.055) ^8

FV = 18416.24