Question

What is the future value of an investment after 14 years if you deposited $2,000 for your child's education and the interest was guaranteed at 16% compounded annually?

Answer 1

Answer:

Amount after 14 years will be $15975.03

Explanation:

We have given that principal amount P = $2000

Time n = 14 years

Rate of interest r = 16 %

We have to find the future value after 14 years

We know that when amount is compounded then future value is given by

$A=P(1+\frac{r}{100})^n$

$A=2000\times (1+\frac{16}{100})^{14}= 15975.03$

So the amount after 14 years will be $15975.03