Kyle invests $5,000 today at a 6% rate of return, which is compounded annually. What is...

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

Solutions

Expert Solution

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)

jeff jeffy answered 2 years ago

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