Asked by Justin Berry on May 17, 2024
Verified
If you are able to earn a 15% rate of return what amount would you need to invest to have $15000 one year from now?
A) $14852
B) $13125
C) $12750
D) $13044
Rate Of Return
The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.
- Determine the future value of both a single lump sum and an annuity.
Verified Answer
SA
Shanuj AgarwalMay 19, 2024
Final Answer :
D
Explanation :
Using the formula for compound interest we have:
$15000 = P(1+0.15)
Solving for P:
P = $13043.48
Therefore the closest answer is D, which is $13044.
$15000 = P(1+0.15)
Solving for P:
P = $13043.48
Therefore the closest answer is D, which is $13044.
Learning Objectives
- Determine the future value of both a single lump sum and an annuity.