Question

Compute the amount that a $42,000 investment today would accumulate at 11% (compound interest) by the end of 6 years.

Answer 1

FV= $78,557.41

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $42,000

Interest rate (i)= 11% = 0.11

Number of periods= 6 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 42,000* (1.11^6)

FV= $78,557.41