Question

Compute the value in 27 years of a $2,000 deposit earning 9 percent per year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value $

Answer 1

The future value of a $2,000 deposit earning 9% per year after 27 years is approximately $15,749.37.

Step-by-step explanation:

To calculate the future value of a deposit, we can use the formula:

Future Value = Principal(1 + Interest Rate)^Time

In this case, the Principal is $2,000, the Interest Rate is 9% (or 0.09), and the Time is 27 years. Plugging in these values, we get:

Future Value = $2,000(1 + 0.09)^27 = $15,749.37

Therefore, the future value of a $2,000 deposit earning 9% per year after 27 years is approximately $15,749.37.