Question

Suppose you invest $10,000 in a mutual fund that earns 6% annual interest. What is the value of your investment 30 years later? Show both the value and evidence of the thinking you used to calculate the value of the investment.

Answer 1

$57400

Explanation:

Given data

P= $10,000

R= 6%

T= 30 years

Let us Assume the investment is compounded Anually

A= P(1+r)^t

A=10000(1+0.06)^30

A=10000(1.06)^30

A=10000*5.74

A=$57400

Hence the Final Amount after 30 years compounded anually is $57400