Question

What is the future value of an investment after 14 years if you deposited $2,000 for your child's education and the interest was guaranteed at 16% compounded annually?

Answer 1

Amount after 14 years will be $15975.03

Step-by-step explanation:

We have given that principal amount P = $2000

Time n = 14 years

Rate of interest r = 16 %

We have to find the future value after 14 years

We know that when amount is compounded then future value is given by

`A=P(1+(r)/(100))^n`

`A=2000* (1+(16)/(100))^(14)=$15975.03`

So the amount after 14 years will be $15975.03