Question

In: Accounting

Show All Work If you invest $2,000 per year starting one year from today, how much...

Show All Work

If you invest $2,000 per year starting one year from today, how much will you have:

a. After 10 years at 8 percent annual return

b. After 30 years at 10 percent annual return

Solutions

Expert Solution

Ans) Future value = Present value (1+ Interest rate) ^ time period

FV = (1+PV)^n

a. Investment of $2,000 after 10years at 8% p.a. compounded annually

Then $4,317.85

b. Investment of $2,000 after 30 years at 10% p.a. Compounded annually

Then $34,898.80

If any doubts or queries please comment and clarify I'll explain asap.

ekkarill92 answered 2 years ago
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