Question

Donald Martin is planning to invest $29,000 today in a mutual fund that will provide a return of 10 percent each year. What will be the value of the investment in 10 years? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Answer 1

$75,218.53 Approx

Step-by-step explanation:

The computation of the value of the investment in 10 years is shown below:

Here the future value is find out

As we know that

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

where,

Present value is $29,000

Interest rate is 10%

And, the number of years is 10

So, the future value is

= $29,000 × (1 + 0.10 )^10

= $75,218.53 Approx