Question

Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. 7.5% per year, compounded daily (assume 365 days/year), after 12 years

Answer 1

Answer: 1,000

First, you have to find how much 7.5% is coming out of 10,000. So in this case it's 750. Multiply 750 by 12 years. Thats 9000, you then subtract 9000 and 10,000 to get 1,000.