Giulia has been a good saver during her time at university whilst working a part-time job, and has managed to save an amount of $15 000 whilst completing her degree. She wants to invest this money for the next 5 years, as otherwise she will be tempted to spend it on a holiday or a new car. Giulia seeks your assistance as she knows you are currently studying a finance unit. a) Determine the value in 5 years of a $15 000 investment at a compound interest rate of 6.75% p.a. compounding annually. Show formula, variables, calculation and a concluding statement in your response. Formula Variables Calculation Concluding Statement
Giulia has been a good saver during her time at university whilst working a part-time job, and has managed to save an amount of $15 000 whilst completing her degree. She wants to invest this money for the next 5 years, as otherwise she will be tempted to spend it on a holiday or a new car.
Giulia seeks your assistance as she knows you are currently studying a finance unit.
a) Determine the value in 5 years of a $15 000 investment at a
Show formula, variables, calculation and a concluding statement in your response.
| Formula |
|---|
| Variables |
| Calculation |
| Concluding Statement |
Future value refers to the amount of the current asset at some specific future date based on the inflation rate, interest rate, etc. It is helpful for investors for estimating the value in the future of the investment made today.
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