What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 O $27,070.41 O $10,000

What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 O $27,070.41 O $10,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

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Question

What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly?
You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc.
O $25,937.42
$27,070.41
O $10,000

Expert Solution

Information;

Initial value (PV) = $10,000

Monthly interest rate (r) = 0.00833333333333333 (i.e. 0.10 / 12)

Monthly period (N) = 120 (i.e. 10 years * 12)

Future value (FV) = ?

Future value is the compounded value of initial deposit.

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