Suppose you set aside $10,000 today in a CD generating 1.5% annually. What will it be...

Suppose you set aside $10,000 today in a CD generating 1.5% annually. What will it be worth in 8 years?

Select one:

a. $10,000

b. $11,200

c. $11,264

d. $14,469

Expert Solution

We have to find here future value of 10000 after 8 yeras at 1.5%

FV = PV(1+r)^n

FV = 10000*(1+0.015)^8 = 10000 x 1.12649259 = 11264 [rounded as asked]

Answer : c : 11264 [Thumbs up please]

jeff jeffy answered 3 years ago

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