Question

In: Finance

What is the future value (FV) OF $60,000 in twenty years, assuming the interest rate is...

What is the future value (FV) OF $60,000 in twenty years, assuming the interest rate is 4% per year?

A. $111,747

B. $118,321

C. $131, 467

D. $39,000

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=60,000*(1.04)^20

=60,000*2.19112314

=$131467(Approx).

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

What is the future value of $600 in 25 years assuming an interest rate of 13...
What is the future value of $600 in 25 years assuming an interest rate of 13 percent compounded semiannually?
What is the future value of $500 in 22 years assuming an interest rate of 13...
What is the future value of $500 in 22 years assuming an interest rate of 13 percent APR, compounded semiannually? rev: 09_17_2012 Multiple Choice $7,356.92 $7,986.43 $7,587.11 $751.61 $640.37
What is the future value of $12,857 in 10 years assuming an interest rate of 8...
What is the future value of $12,857 in 10 years assuming an interest rate of 8 percent compounded monthly? Maybepay Life Insurance Co. is selling a perpetual contract that pays $5,849/year. The contract currently sells for $154,173. What is the rate of return on this investment? Enter answer with 4 decimals (e.g. 0.1234).
What is the future value of $3,100 in 17 years assuming an interest rate of 8.4...
What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate...
Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate Future Value $ 3,159 84,53 89,305 T 16 19 26 13% Y 9 5 Compute Present Value 15 8 13 25 7% 11 10 13 $ 17,328 41,517 7903,82 647,816 Compute the interest rate Present Value Years Interest rate Future Value $ 715 905 15,000 70,300 11 8 23 16 $ 1,381 1,718 141,832 312,815 Q2: Compute the Future value of $ 1,000 continuously...
If the current rate interest 7%, then the future value (FV) if an investment that pays...
If the current rate interest 7%, then the future value (FV) if an investment that pays $2299 per year and lasts 18 years is closest to_?
Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest...
Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? Calculating APR. Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 17.1 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. Calculating Annuity Cash Flows. If...
Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest...
Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? Calculating APR. Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 17.1 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. Calculating Annuity Cash Flows. If...
What is the future value of $300 in 19 years assuming aninterest rate of 10...
What is the future value of $300 in 19 years assuming an interest rate of 10 percent compounded semiannually?
what is the future value of 1000 deposited for 5 years, if the interest rate is...
what is the future value of 1000 deposited for 5 years, if the interest rate is 10% per annuam compounded, daily, annually, monthly, contuously, weekly, weekly.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT