Question

What is the future value of $3,325 per year for 20 years at an interest rate of 7.29 percent?

Answer 1

The future value of $3,325 per year for 20 years at an interest rate of 7.29 percent is approximately $12,950.88.

Step-by-step explanation:

The future value of $3,325 per year for 20 years at an interest rate of 7.29 percent can be calculated using the formula for compound interest. The formula is:

Future Value = Present Value * (1 + Interest Rate)^Number of Years

Plugging in the values, we have:

Future Value = $3,325 * (1 + 0.0729)^20

Calculating this, the future value turns out to be approximately $12,950.88.

Answer 2

The future value of $3,325 per year for 20 years at an interest rate of 7.29% is $55,460.58.

Step-by-step explanation:

The future value can be calculated using the formula for compound interest:

Future Value = Present Value * (1 + Interest Rate)Number of Years

In this case, the present value is $3,325 per year for 20 years, and the interest rate is 7.29%.

So, the future value is:

$3,325 * (1 + 0.0729)20 = $***55,460.58***