Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10 each year. What will be the value of the investment in 10 years? Round to two decimal places.
Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10 each year. What will be the value of the investment in 10 years? Round to two decimal places.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...
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Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10 each year. What will be the value of the investment in 10 years? Round to two decimal places.
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Step 1 Analysis
We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive after a specified period by investing today. We can use this formula for Future value
Future value =Parsent value(1+r)n
Where, Persent value is the amount invested today
r= rate of return on investment
n = number of years of investment
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