In: Finance
Mitchell Huntzberger recently sold his holdings in the stock market for $516,990 and is planning to invest the proceeds in a 4-year bank certificate of deposit with a rate of 3.45%. The amount Mitchell will have when the certificate matures is closest to:
A. |
$546,508.11. |
|
B. |
$592,112.35. |
|
C. |
$451,398.55. |
Answer:(b)592,112.35
The amount Mitchell will receive can be computed uding the FV function in Excel
The initial deposit=3.45%
The period=4 years
The future value can b computed using the formula =FV(B4,B3,0,-B2) we get future value as $592.112.35