Question

How much will $25,000 grow to in four years, assuming an interest rate of 10% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar(EV of PV EVA of and PVA of Choice

a) $36,603
b) $35,000
c) $ 42,075
d) $61,603

Answer 1

The investment will grow to approximately $36,603 in four years.

To calculate the future value of an investment with compound interest, we can use the formula:

FV = PV(1+r)^n

Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods. In this case, we have:

FV = $25,000(1+0.10)^4 = $36,763

Therefore, the investment will grow to approximately $36,603 in four years.