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7 September, 07:21

Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods: (Do not round intermediate calculations, round final answers to 2 decimal places, e. g. 15.25.)

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  1. 7 September, 09:57
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    Answer: Future Value FV = 169,500

    Explanation:

    The information given to us are;

    Present value PV = 113000

    Interest R = 10% = 0.01

    number of years T = 5

    Future value FV = ?

    So using the formula

    FV = PV * [1 + (R * T) ],

    We input our value

    FV = 113000 * [ 1 + (0.1 * 5) ]

    FV = 113000 * [ 1 + 0.5]

    FV = 113000 * 1.5

    FV = 169500
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