Ask Question
BusinessBusiness
3 July, 19:50

Brian Lee is planning to invest $23,000 today in a mutual fund that will provide a return of 11 percent each year. What will be the value of the investment in 10 years?

+2
Answers (1)
  1. 3 July, 20:06
    0
    Answer: the value of the investment would be $65307 in 10 years

    Explanation:

    Initial amount that Lee invested is $23000 This means that the principal is

    P = 23000

    It was compounded annually. This means that it was compounded once in a year. So

    n = 1

    The rate at which the principal was compounded is 11%. So

    r = 11/100 = 0.11

    The duration of the investment is 10 years, So

    t = 10

    The formula for compound interest is

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

    A = total amount in the account at the end of t years. Therefore

    A = 23000 (1+0.11/1) ^1*10

    A = 23000 (1.11) ^10 = $65307
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Brian Lee is planning to invest $23,000 today in a mutual fund that will provide a return of 11 percent each year. What will be the value ...” 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
You Might be Interested in
Dots sells T-shirts for $2 and shorts for $3. In April, total sales were $576. People bought 3 times as many T-shirts as shorts. How many T-shirts and shorts did Dots sell?
Answers (1)
Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output.
Answers (1)
Which concept do businesses Which professional source provides entrepreneurs with expertise and knowledge about buying an existing business in return for commission? use to earn income?
Answers (1)
Johnny Appleseed Brewing Company (JABC) has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750.
Answers (1)
Dan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer, sells Thelma his collection of seashells. Philip, a CEO of a successful company, sells George his pet parakeet.
Answers (1)
New Questions in Business
Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return rule to accept or reject projects. C0 C1 C2 C3 - $11,600 0 + $9,100 + $10,100 a.
Answers (1)
Your roommate is a better cook than you are, but you can clean more quickly than your roommate can. If your roommate did all the cooking and you did all the cleaning, would your chores take you more or less time than if you divided each task evenly?
Answers (2)
Tyler Toys has beginning inventory for the year of $19,600. During the year, Tyler purchases inventory for $233,000 and has cost of goods sold equal to $236,000. Tyler's ending inventory equals: Multiple Choice $19,800. $19,600. $16,600. $22,600.
Answers (1)
Larkspur, Inc. was opened on August 1 by Joe Larkspur. The following selected events and transactions occurred during August. Aug. 1 Invested $57,000 cash in the business in exchange for common stock.
Answers (1)
Which growth strategy is being used when a firm introduces a new product or service to a market segment that is currently not served by the firm?
Answers (1)
Home » Business » Brian Lee is planning to invest $23,000 today in a mutual fund that will provide a return of 11 percent each year. What will be the value of the investment in 10 years?
Sign Up Forgot Password?