How much will you have at the end of 21 years if you invest $230 today...

How much will you have at the end of 21 years if you invest $230 today at 13% annually compounded ?

2650.31

3384.18

2994.85

3526.56

Expert Solution

Use future value formula (In excel) for deriving the answer

Use FV formula in excel = FV(rate,nper,pmt,(pv),type)

Rate (r) per month = 0.13

Nper = No . of Period of compounding (21 Years)

Pmt = 0 (in this case)

Pv = One time deposit of $230 at the beginning of the period

Type = at the beginning of the period (denoted as "1" in formula)

FV = =FV(0.13,21,0,230,1) = $2994.85

Therefore option C is correct.

jeff jeffy answered 2 years ago

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