In: Finance
Mitchell Huntzberger recently sold his holdings in the stock market for $427,635 and is planning to invest the proceeds in a 3 year bank certificate of deposit with a rate of 4.15%. The amount Mitchell will have when the certificate matures is closest to:
A. |
$378,525.74. |
|
B. |
$452,958.83. |
|
C. |
$483,115.61. |
The amount is computed as follows:
Future value = Present value x (1 + r)n
= $ 427,635 x 1.04153
= $ 483,115.61 Approximately
So, the correct answer is option c.