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what is the future value of $6,000 received today if it is invested at 7ompounded annually for three years?

User Dira
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1 Answer

7 votes

Final answer:

The future value of $6,000 invested at 7% compound interest annually for three years is approximately $7,501.57.

Step-by-step explanation:

To calculate the future value of $6,000 invested at 7% compounded annually for three years, we can use the formula for compound interest:

Future Value = Present Value × (1 + Interest Rate)^Number of Periods

Plugging in the given values, we have:

Future Value = $6,000 × (1 + 0.07)^3

Calculating this, we get:

Future Value = $6,000 × (1.07)^3 ≈ $7,501.57

User TRomesh
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