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What is the future value of $15,000 received today if it is invested at 7.5% compounded annually for five years

User Zjames
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1 Answer

5 votes

Answer:

the future value is $21,534.44

Step-by-step explanation:

The computation of the future value is shown below:

As we know that

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

where,

Present value is $15,000

The Interest rate is 7.5%

And, the number of the year is 5 years

Now put these values to the above formula

So, the future value is

= $15,000 × (1 + 0.075)^5

= $21,534.44

Hence, the future value is $21,534.44

User Clint Miller
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