I can’t figure out the total amount invested Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. Theinvestment is over a 15-year period. What is the amount of Dave's total investment?

Answered: Dave put $22,000 in an investment that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...

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I can’t figure out the total amount invested

Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The
investment is over a 15-year period. What is the amount of Dave's total investment?

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Future Value refers to the value of the current asset or investment or of cash flows at a specified interest rate for a specified period of time at some specified future date. It is an important concept of the time value of money which is very useful for everyone especially to the investors as they can evaluate the worth of their investments or securities in future and accordingly can take the decision of whether to invest or not.

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