contestada

If $12,000 is invested at 4.5% for 20 years, find the future value if theInterest is compounded…Annually 3a)28,940.57Semiannually 3b)Quarterly 3c)_________Monthly 3d)29,456.60Continuously 3e)_________

Respuesta :

(a): Given:

There are given that the present value is $12000 and interest is 4.5% and 20 years.

Explanation;

To find future value, we need to use the future value formula;

Then,

From the formula of future value for annually:

[tex]FV=PV(1+r)^n[/tex]

Where,

[tex]\begin{gathered} PV=12000 \\ r=0.045 \\ n=20 \end{gathered}[/tex]

Then,

Put the values into the above formula:

So,

[tex]\begin{gathered} FV=PV(1+r)^{n} \\ FV=12000(1+0.045)^{20} \\ FV=12000(1.045)^{20} \end{gathered}[/tex]

Then,

[tex]\begin{gathered} FV=12,000(1.045)^{20} \\ FV=28940.568 \end{gathered}[/tex]

Final answer:

Hence, the future value is shown in below:;

[tex]FV=28,940.568[/tex]

Otras preguntas