Asked by Casey Hamilton on Jun 29, 2024
Verified
A company has $50,000 today to invest in a fund that will earn 7%.How much will the fund contain at the end of 8 years?
Interest Rate
The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.
- Estimate the eventual worth of investment or savings portfolios, considering consistent contributions through time.
- Examine investment or credit conditions to make educated monetary decisions.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
$85,910
Future Value = Present Value * FV Factor
Future Value = $50,000 *1.7182 = $85,910
1.7182 is the FV factor on the Future Value table; n = 8; i = 7%
Future Value = Present Value * FV Factor
Future Value = $50,000 *1.7182 = $85,910
1.7182 is the FV factor on the Future Value table; n = 8; i = 7%
Learning Objectives
- Estimate the eventual worth of investment or savings portfolios, considering consistent contributions through time.
- Examine investment or credit conditions to make educated monetary decisions.