Question

Matt is planning to invest $7,000 in a mutual fund at the end of each of the next eleven years. If his opportunity cost rate is 5 percent compounded annually, how much will his investment be worth after the last annuity payment is made? Use a financial calculator to determine the amount.

a. $92,665
b. $95,526
c. $97,257
d. $99,448

Answer 1

The answer is d. $99,448

Step-by-step explanation:

Interest Rate Per Time Period: 5 %

Number of Time Periods: 11

Present Value: 7000