Ask Question
19 May, 21:59

You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money will you have in 31 years

+5
Answers (1)
  1. 19 May, 22:02
    0
    Money in 31 years will be = $1,648,641.73

    Explanation:

    As per the given dа ta:

    Inherit Money (PV) = $114,000

    Interest rate (i) = 9% p. a (Compounding is done annually as said in the question)

    Holding period (n) = 31 years.

    Money to have in is the Future value (FV) = ?

    We can use following time value formula to calculate the future value -

    FV = PV * (1 + i) ^ n

    putting the values:

    FV = 114,000 * (1 + 0.09) ^ 31

    FV = 114,000 * (14.461769531353)

    Thus,

    Future Value is = $1,648,641.73
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money ...” 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