Ask Question
10 November, 05:07

Dwayne plans to invest $4,700 in a savings account at the beginning of each of the next 12 years. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of 12 years?

+4
Answers (1)
  1. 10 November, 05:20
    0
    his investment will be worth $39,944 at the end of 12 years.

    Explanation:

    FV = PV (1 + i) ^n

    = $4,700 + $4,700*PVAF (7%,11 years)

    = $4,700 + $4,700*7.49867

    = $4,700 + $35,244

    = $39,944

    Therefore, his investment will be worth $39,944 at the end of 12 years.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dwayne plans to invest $4,700 in a savings account at the beginning of each of the next 12 years. If his opportunity cost rate is 7 percent ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers