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Your aunt has given you $8,000 in her will. Rather than spending it today, you've chosen...

Your aunt has given you $8,000 in her will. Rather than spending it today, you've chosen an investment that offers a 6% rate of return. How much will you have at the end of the year?

Solutions

Expert Solution

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period.

A=8000*(1.06)

=$8480

jeff jeffy answered 2 years ago
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