Your have $15,000 that you want to invest. You expect your investment to yield 5% annual growth compounding annually over the long term. How much will your investment be worth in 15 years? $29,487 $31,184 $31,706 $32,546
Your have $15,000 that you want to invest. You expect your investment to yield 5% annual growth compounding annually over the long term. How much will your investment be worth in 15 years? $29,487 $31,184 $31,706 $32,546
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
Your have $15,000 that you want to invest. You expect your investment to yield 5% annual growth compounding annually over the long term. How much will your investment be worth in 15 years?
|
$29,487 |
||
|
$31,184 |
||
|
$31,706 |
||
|
$32,546 |
Expert Solution
Step 1
Future value = Present value×[1+Periodic interest rate]^n
Where,
N = Number of periods (years) = 15
Periodic interest rate = 5%
Present value =$15,000
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