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cricket20 [7]
3 years ago
12

Suppose you invest $34,600 into a savings account with a 11.25% annual interest rate

Mathematics
1 answer:
Sergeu [11.5K]3 years ago
6 0

Answer:

$103,373.81

Step-by-step explanation:

The calculation of the future value is shown below:

As we know that

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

where,  

rate of interest = 11.25% ÷ 2 = 5.625%

And, the number of years is = 2 × 10 = 20

Therefore, the future value is

= $34,600 × (1 + 5.625%)^20

= $34,600 × 2.987682472  

= $103,373.81

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