Question

Sam inherits $250,000, which he invests at a rate of 9% compounded annually. How much will Sam's investment be worth in 25 years?

Answer 1

the amount that should be worth in 25 years is $2,155,770

Explanation:

The computation of the amount that should be worth in 25 years is shown below:

As we know that

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

= $250,000 × (1 + 0.09)^25

= $250,000 × 1.09^25

= $2,155,770

Hence, the amount that should be worth in 25 years is $2,155,770