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You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EA: How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one...

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Question

You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?

Expert Solution

Step 1

Future value can be calculated using

FV (rate, nper, pmt, [Pv], [type])

Rate The interest rate
Nper The total number of payments
Pmt Payment per period
Pv The present value
Fv The future value
Type The number 0 (zero) or 1 and indicates when payments are due.

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