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arlik [135]
3 years ago
8

You want to deposit $12,000 in a bank at an interest rate of 8 percent per year. What is the future value of this money after fi

ve years?
English
2 answers:
DanielleElmas [232]3 years ago
4 0
<span>12,000×(1.08<span>)^5 </span></span><span>and a calculator</span>
LenKa [72]3 years ago
4 0

The correct answer is: "$17,631.937"

If a certain amount of money wants to be expressed in money units of five years from now,<u> 'the Future Value Formula' needs to be applied:</u>

Future value= PV * (1 + i) ⁿ , where

  • PV = present value of the money deposited
  • i = interest rate
  • n = number of periods that the money is deposited

FV = $12,000 * (1 + 0.08)^5=  $17,631.937

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