Knowee
Questions
Features
Study Tools

Find the future value at the end of 5 years of $900 invested today at an interest rate of 17 per cent.a.$1992.1b.$1968.62c.$1976.5d.$1973.2

Question

Find the future value at the end of 5 years of $900 invested today at an interest rate of 17 percent.

a. 1992.1b.1992.1 b. 1968.62
c. 1976.5d.1976.5 d. 1973.2

🧐 Not the exact question you are looking for?Go ask a question

Solution

To find the future value of an investment, you can use the formula for compound interest, which is:

FV = PV * (1 + r/n)^(nt)

Where: FV = Future Value PV = Present Value r = annual interest rate (in decimal form) n = number of times that interest is compounded per year t = time the money is invested for in years

Given in the problem: PV = $900 r = 17% or 0.17 (in decimal form) n = 1 (since it's not mentioned, we assume the interest is compounded annually) t = 5 years

Substitute these values into the formula:

FV = 900 * (1 + 0.17/1)^(1*5) FV = 900 * (1.17)^5 FV = 900 * 2.08008426 FV = $1872.08

So, none of the options given in the question are correct. The future value of 900investedtodayataninterestrateof17900 invested today at an interest rate of 17% at the end of 5 years would be approximately 1872.08.

This problem has been solved

Similar Questions

An investment offers to pay $100 a year forever starting at the end of year 6. If the interest rate is 8%, what is the investment's value today?

ind the present value of a payment §200 at the end of 5th year under theforce of interest 9.00% per annum.

Calculate the amount of money invested at 9.25% per annum, when $5 781.25 simpleinterest was collected after 5 years.

$600 at a rate of 2% per year simple interest.Calculate the value of Ali’s investment at the end of 5 years

Determine the value of each investment(a) An investment of $10000 at an APR of 5.2% compounded annually for 13 years

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.