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Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years
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Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years

User Pavitar
by
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1 Answer

9 votes

Answer:

$6,312

Step-by-step explanation:

The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.

Note : Here I will use a financial calculator to compute the future value

PV = $5,000

r = 6 %

P/yr = 1

n = 4

Pmt = $0

Fv = ?

Thus, the investment will be worth $6,312 in 4 years.

User Krupal Shah
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4.1k points
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