Question

If a small company invests its annual profits of $150,000 in a stock fund which earns 18% per year, the amount in the fund after 10 years will be nearest to:

Answer 1

the amount in the fund after 10 years will be $785,075.04

Step-by-step explanation:

The computation of the amount after 10 years is shown below"

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $150,000 × (1 + 0.18)10

= $785,075.04

Hence, the amount in the fund after 10 years will be $785,075.04