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What is the future value of $11,600 invested for 17 years at 7.25 percent compounded annually?

a. $27,890.87
b. $41,009.13
c. $38,991.07
d. $32,483.60
e. $38,125.20

User Kryger
by
8.2k points

1 Answer

3 votes

Final answer:

The future value of $11,600 invested for 17 years at 7.25% compounded annually is $41,009.13. Therefore, the correct answer is b. $41,009.13

Step-by-step explanation:

To calculate the future value of an investment with compound interest, you can use the formula:

FV = PV imes (1+r)^n

Where FV is the future value, PV is the present value (the initial investment), r is the interest rate per period, and n is the number of periods.

In this case, the present value is $11,600, the interest rate per period is 7.25%, and the number of periods is 17 years. Plugging these values into the formula:

FV = 11,600 imes (1+0.0725)^{17}

Calculating this equation yields a future value of $41,009.13.

Therefore, the correct answer is b. $41,009.13

User Graza
by
8.5k points