Scarlett is considering investing $10,000 she will receive from a trust fund when she turns 25 years old. If she invested the money for three years at 4% per year, compounded annually, what would her investment be worth at the end of three years? Note: Assume this problem uses Compounding Interest (compounded annually), NOT Simple Interest. $10,400 O $11,200 $11,249 O $10,816
Scarlett is considering investing $10,000 she will receive from a trust fund when she turns 25 years old. If she invested the money for three years at 4% per year, compounded annually, what would her investment be worth at the end of three years? Note: Assume this problem uses Compounding Interest (compounded annually), NOT Simple Interest. $10,400 O $11,200 $11,249 O $10,816
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 6PROB
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Transcribed Image Text:Scarlett is considering investing $10,000 she will receive from a trust fund when she turns 25 years
old. If she invested the money for three years at 4% per year, compounded annually, what would
her investment be worth at the end of three years? Note: Assume this problem uses Compounding
Interest (compounded annually), NOT Simple Interest.
$10,400
$11,200
$11,249
O $10,816
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