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olasank [31]
3 years ago
7

Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods:

(Do not round intermediate calculations, round final answers to 2 decimal places, e.g. 15.25.)
Business
1 answer:
Sati [7]3 years ago
3 0

Answer: Future Value FV = 169,500

Explanation:

The information given to us are;

Present value PV = 113000

Interest R = 10% = 0.01

number of years T = 5

Future value FV = ?

So using the formula

FV = PV * [1 + (R * T)],

We input our value

FV = 113000 * [ 1 + ( 0.1 * 5) ]

FV = 113000 * [ 1 + 0.5]

FV = 113000 * 1.5

FV = 169500

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