What is the future value of $121,307 invested today in an account that earns a 7.5%...

What is the future value of $121,307 invested today in an account that earns a 7.5% annual rate in 40 years?

Expert Solution

future value = present value * (1 + rate)^{number of
years}

future value = $121,307 * (1 + 7.5%)⁴⁰

future value = $2,188,892.50

jeff jeffy answered 3 years ago

What is the future value of $850 received today if it is invested at 7.5%, compounded...

What is the future value of $850 received today if it is invested at 7.5%, compounded annually for 11 years?

a. What is the future value in five years of $1,000 invested in an account with...

a. What is the future value in five years of $1,000 invested in an account with an APR of 10 percent, compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value in five years of $1,000 invested in an account with an APR of 10 percent, compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the...

What is the future value in seven years of $1,100 invested in an account with an...

What is the future value in seven years of $1,100 invested in an account with an APR of 8 percent, compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b. What is the future value in seven years of $1,100 invested in an account with an APR of 8 percent, compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future...

What is the future value of $100 invested today at 6 percent for four years? What...

What is the future value of $100 invested today at 6 percent for four years? What is the present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent? What is the future value of $200 invested today at 8 percent for three years?

What happens to the future value of some fixed dollar amount invested today as the interest...

What happens to the future value of some fixed dollar amount invested today as the interest rate decreases? Why? What happens to the present value of some fixed dollar amount to be received in the future as the interest rate increases? Why? What happens to the present value of some fixed dollar amount to be received in the future as the time to receive the money decreases? Why? Which will have a higher present value, assuming the same discount rate,...

1.What is the future value of $2,500 invested today at 12% interest in 5 years with...

1.What is the future value of $2,500 invested today at 12% interest in 5 years with interest compounded quarterly? (show workout) $4,515.28 $4,552.15 $1,384.19 $4,405.85 $4,031.50 2.What is the present value of $13,500 received 5 years from now using a 16% interest or discount rate, with interest compounded daily? (Show workout) $6,223.44 $6,161.22 $5,230.18 $30,039.54 $6,067.00 3. Assume that you are a saver, and use coupons. Each week you save $5.00 using coupons, and save the money for your retirement....

Find the future value at the end of 7 years of $1300 invested today at an...

Find the future value at the end of 7 years of $1300 invested today at an interest rate of 10 per cent compounded semiannually.

a. Compute the future value at the end of 4 years of $900 invested today at...

a. Compute the future value at the end of 4 years of $900 invested today at an interest rate of 6 per cent and describe two business uses for this specific type of computation. b. Compute the future value at the end of 4 years of $900 put away in a savings account each of four years at an interest rate of 6 per cent and describe two business uses for this specific type of computation. c. Explain the time...

What is the future value of $1,000 invested today at an annual interest rate of 5% for four years?

what us the future value of $1000 invested today if you earn 2 percent annually for...

what us the future value of $1000 invested today if you earn 2 percent annually for five years?

Question