What is the future value of $7,189 invested for 23 years at 9.25% compounded monthly? (Please...

What is the future value of $7,189 invested for 23 years at 9.25% compounded monthly?

(Please show how to use financial calculator for this problem)

Solutions

Expert Solution

Answer:
Present Value = $7,189
Rate (r ) = 9.25% annually or 0.7708% monthly
Time (n ) = 23 years or 276 months
Future Value = ??

Future Value = Present Value * (1 + r) ^ n
Future Value = $7,189 * (1 + 0.007708)^ 276
Future Value = $7,189 * 1.007708^ 276
Future Value = $7,189 * 8.32490
Future Value = $59,847.71

Using financial calculator:
N = 276
I = 0.7708%
PV = -7189
PMT = 0

FV = 59847.70

Future Value = $59,847.70

jeff jeffy answered 2 years ago

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