To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna Lind deposits $8,300 in an investment account earning 6% interest compounded quarterly. How much will Hanna have in her account in 10 years? (Use the Table 12.1 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. Amount
To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna Lind deposits $8,300 in an investment account earning 6% interest compounded quarterly. How much will Hanna have in her account in 10 years? (Use the Table 12.1 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. Amount
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
Related questions
Question
Transcribed Image Text:To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna Lind deposits $8,300 in an
investment account earning 6% interest compounded quarterly. How much will Hanna have in her account in 10 years? (Use the Table
12.1 provided.)
Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount.
Amount
Expert Solution
Concept:
The future value (FV) is the amount of money that an investment will be worth at a specified date in the future, given a certain rate of return. The formula for calculating the future value is:
where:
- PV is the present value or the initial investment amount
- r is the rate of return, expressed as a decimal
- n is the number of periods, usually measured in years
The future value is an important concept in personal finance and investing, as it can help individuals determine how much their investments will be worth in the future and make informed decisions about saving and investing.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education