71.0k views
0 votes
If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________

1 Answer

3 votes

Answer:

If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________

$7,873.83

Step-by-step explanation:

a) Data:

Annual investment = $1,600

Interest rate = 14%

Number of period = 4 years

b) Calculations, using an online finance calculator:

FV (Future Value) $7,873.83

PV (Present Value) $4,661.94

N (Number of Periods) 4.000

I/Y (Interest Rate) 14.000%

PMT (Periodic Payment) $1,600.00

Starting Investment $0.00

Total Principal $6,400.00

Total Interest $1,473.83

c) The investment of $1,600 at the end of every year for fours will grow to $7,873.83 with the principal amount of $6,400 ($1,600 * 4) plus compounded interest of $1,473.83.

User Ghedeon
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories