Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The investment is over a 15-year period. What is the amount of Dave's total investment?
Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The investment is over a 15-year period. What is the amount of Dave's total investment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I can’t figure out the total amount invested
![Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The
investment is over a 15-year period. What is the amount of Dave's total investment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2100c2bb-ae99-47b9-9834-94a7c9502117%2Fd0dbd38d-66d5-4a9f-bc02-d26128d27b0d%2F2u27kwl4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The
investment is over a 15-year period. What is the amount of Dave's total investment?
Expert Solution
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Step 1
Future Value refers to the value of the current asset or investment or of cash flows at a specified interest rate for a specified period of time at some specified future date. It is an important concept of the time value of money which is very useful for everyone especially to the investors as they can evaluate the worth of their investments or securities in future and accordingly can take the decision of whether to invest or not.
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