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g how much will 5500 invested at the end of each year grow in three years, assuming a interest rate of 11%

User Wadkar
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1 Answer

5 votes

Answer:

FV= $17,105

Step-by-step explanation:

Giving the following information:

Annual investment= $5,500

Interest rate= 11%

Number of periods= 3

I will assume that the annual deposit is at the end of the year.

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500

FV= $17,105

User Breakingobstacles
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