Question

Crane Corp management will invest 340,000 , 606,000 , 210,000 , 818,400 , 1,239,644 and 1,617,848 in research over the next six years. If the appropriate interest rate is 7.25 percent what is the future value of of these investments eight years from today.

Answer 1

The future value of the investments eight years from today is $6,073,601.

Step-by-step explanation:

To calculate the future value of the investments, we can use the compound interest formula:

Future Value = Principal × (1 + Interest rate)time

In this case, the principal is the amount of money invested each year, the interest rate is 7.25%, and the time is 8 years.

Using this formula for each investment amount and summing up the future values, we find that the future value of the investments eight years from today is $6,073,601.