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BlackZzzverrR [31]
3 years ago
10

Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years

Business
1 answer:
Sergeeva-Olga [200]3 years ago
8 0

Answer:

$6,312

Explanation:

The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.

Note : Here I will use a financial calculator to compute the future value

<em>PV = $5,000</em>

<em>r = 6 %</em>

<em>P/yr = 1</em>

<em>n = 4</em>

<em>Pmt = $0</em>

<em>Fv = ?</em>

Thus, the investment will be worth $6,312 in 4 years.

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