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uysha [10]
4 years ago
8

Rusty Industries has decided to save $50,000 a year for two years and then increase that amount to $80,000 for an additional thr

ee years. Which one of these formulas will correctly compute the future value of these savings as of Year 5 at a rate of 7 percent
Business
1 answer:
Gwar [14]4 years ago
4 0

Answer:

FVA5 = [$50,000 * (1.075 -1) / 0.07] + [$30,000 * (1.073 - 1) / 0.07]

Explanation:

Future value is value of asset or security at a later date in future with incorporating the effects of growth rate. Rusty Industries have decided to save $50,000 which will then grow to $80,000 for three years. The year 5 rate is 7% which will be used to compute the future value of savings.

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Answer:

2.58%

Explanation:

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