Question

You will receive $15,000 in two years when you graduate. You plan to invest this at an annual interest rate of 6.5%. How much money will you have 8 years from now?
a. $24,824.94.
b. $19,381.16.
c. $21,887.13.
d. $23,209.19.
e. $20,414.73.

Answer 1

Answer:

FV= $21,887.13

Explanation:

Giving the following information:

Initial investment= $15,000

Number of periods= 6 years

Interest rate= 6.5% compounded annually

To calculate the future value of the investment, we need to use the following formula:

FV= PV*(1+i)^n

FV= 15,000*(1.065^6)

FV= $21,887.13