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olya-2409 [2.1K]
3 years ago
6

if you start making $265 monthly contributions today and continue them for four years, what is the furture value if the compound

ing rate is 9.75 percent APR?
Business
1 answer:
galina1969 [7]3 years ago
5 0

Answer:

FV= $15,482.98

Explanation:

Giving the following information:

Monthly investment= $265

Number of periods= 12*4= 48

Interest rate= 0.0975/12= 0.00813

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {265*[(1.00813^48) - 1]} / 0.00813

FV= $15,482.98

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