Question

Angler’s Edge, worth $12 million, is expected to grow at 5% per year compounded annually for 7 years.

Find the future value to the nearest million.

$16 million

$18 million

$17 million

$19 million

Answer 1

Ans: $16 million

Step-by-step explanation:
First you need to find the 5% of $12 million:
12*5/100 = $0.6 million

Now as it is compounded annually for 7 years:
12 + (7* 0.6) = $16.2 million

So the nearest one is $16 million.