Sandy wants to go on a trip in 10 years. If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate, she will accumulate ____ to spend on her trip
Sandy wants to go on a trip in 10 years. If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate, she will accumulate ____ to spend on her trip
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sandy wants to go on a trip in 10 years. If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate, she will accumulate ____ to spend on her trip
Group of answer choices
$17,549.
$15,105.
$10,610.
$16,710.
$12,130.
Expert Solution
Step 1
Introduction
Interest rate;
A rate of interest indicates how expensive borrowing is or how advantageous saving is. So, when you are a lender, The amount you pay for borrowing money is known as the interest rate and is expressed as a percentage of the total loan amount.
A percentage of the loan's principle is charged as interest in exchange for the usage of the borrowed money. One of the key components of the American economic system is interest rates. They have an impact on borrowing costs, savings yields, and are a significant contributor to the overall return on many assets.
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