Question

gary king is planning to invest 29000 today in a mutual fudn that will provide a return of 9 percent each year. what will be the value of the investmwent in 10 years

Answer 1

With a 9% annual return over 10 years, Gary's $29,000 investment can blossom to nearly $62,407.

To calculate the future value of Gary's investment, we can use the formula for compound interest:

Future Value (FV) = Principal (P) * (1 +
`Interest Rate (r))^(Number of Periods (n))`

In this case:

Principal (P) = $29,000

Interest Rate (r) = 9% (converted to decimal: 0.09)

Number of Periods (n) = 10 years

Plugging these values into the formula:

FV = $29,000 *
`(1 + 0.09)^{10`

FV ≈ $62,406.72

Therefore, Gary's investment will grow to approximately $62,406.72 in 10 years due to the compounding effect of the 9% annual return.

Remember, this is an approximate value based on the provided information. Actual returns may vary due to market fluctuations and other factors.

Complete question:
What will be the value of Gary King's $29,000 investment in a mutual fund that offers a 9 percent annual return, after 10 years?