Question

What is the value on January 1, 2026, of $40,000 deposited on January 1, 2019, which accumulates interest at 12% compounded annually

Answer 1

$88,427.

Step-by-step explanation:

Use the Time Value of Money Techniques to find the value in 2026 (Future Value)

Where,

Pv = - $40,000

i = 12 %

Pmt = $0

P/yr = 1

n = 7

Fv = ?

Using a Financial calculator, the Future Value (Fv) is $88,427.26 or $88,427.