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statuscvo [17]
3 years ago
9

Future value: Ning Gao is planning to buy a house in five years. She is looking to invest $25,000 today in an index mutual fund

that will provide her a return of 12 percent annually. How much will she have at the end of five years? (Round to the nearest dollar.)
Business
1 answer:
Gemiola [76]3 years ago
6 0

Answer:

$44,059

Explanation:

The formula and the computation of the future value is shown below:

Future value = Present value × (1 + interest rate)^number of years  

= $25,000 × (1 + 0.12)^65

= $25,000 × 1.7623416832

= $44,059

By applying the future value formula, we calculated the future value by considering the present value, interest rate, and the time period

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