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You have gifted 20000 dollars and want to use this 30 years from now. How much...

You have gifted 20000 dollars and want to use this 30 years from now. How much more money will you have (FV) if interest rates are 6% or 7%??

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Expert Solution

rate positively ..

Computation of future value
Ans a)
Future value = $ 114,869.82
20000*(1+6%)^30
ans = $ 114,869.82
Ans b)
Future value = $ 152,245.10
20000*(1+7%)^30
Ans = $ 152,245.10

jeff jeffy answered 2 years ago
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