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densk [106]
3 years ago
6

Brandon is looking to invest for retirement, which he hopes will be in 30 years. He is looking to invest $39,500 today in U.S. T

reasury bonds that will earn interest at 2.50 percent annually. How much will he have at the end of 30 years? (Round to the nearest dollar.) a. $68,870 b. $76,055 c. $80,238 d. $92,451 e. $82,854
Business
1 answer:
Elis [28]3 years ago
6 0

Answer:

e. $82,854

Explanation:

Assuming compounding occurs only once a year, the future value of a $39,500 investment for 30 years at a rate of 2.50% per year is determined by:

FV = P*(1+r)^n\\FV = \$39,500*(1+0.025)^{30}\\FV=\$82,854

At the end of 30 years, Brandon will have $82,854.

The answer is alternative e. $82,854

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