In: Finance
Kyle invests $5,000 today at a 6% rate of return, which is compounded annually. What is the future value of this investment after 7 years?
a |
$7,518.15 |
|
b |
$9,118.92 |
|
c |
$11,312.38 |
|
d |
$13,934.71 |
Answer:
Calculation of the future value:
Formula,
Future value = Present value x (1+ rate)^n
Equate for future value.
= $5,000 x (1+0.06)^7
= $5,000 x (1.06)^7
= $5,000 x 1.503630
= $7,518.15 (Answer)