What is the future value of $11,600 invested for 17 years at 7.25 percent compounded annually?

The answer to the question above is $38,125.19 which is the future value of $11,600 invested for 17 years at 7.25 percent compounded annually. This problem can be solved by using the future value formula which stated as FV = PV * (1+i) ^n. In this formula, FV is the future value, PV is the present value, i is the interest rate, and n is the compounding period (Calculation: 38,125.19 = 11,600 * (1+7.25%) ^17).

This is the concept of time value of money, to calculate for the future value of the principle amount given by $11600 invested for 17 years at a rate of 7.25% we proceed as follows;

A=P (1+r/100) ^n

A=11600 (1+7.25/100) ^17

A=11600 (1.0725) ^17

A=38,125.20

The answer is $38,125.20