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Schach [20]
3 years ago
14

g how much will 5500 invested at the end of each year grow in three years, assuming a interest rate of 11%

Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

Answer:

FV= $17,105

Explanation:

Giving the following information:

Annual investment= $5,500

Interest rate= 11%

Number of periods= 3

I will assume that the annual deposit is at the end of the year.

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

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

A= annual deposit

FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500

FV= $17,105

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