Question

Calculate the FV of a $422 investment at the end of four years assuming an annually compounded rate of return of 6.7%. (round to integer, do not use or e.g. 12345)

Answer 1

FV=PV(1+I)^n

FV=422(1+0.067)^4

FV=422(1.296)

FV=547

Step-by-step explanation:

FV refers to the future value of N$422 invested today at a rate of 6.7% compounded annually.

(1+I)^n gives us the discount factor, with which we multiply with the Present value to get the FV

I represent the interest rate

Answer 2

Answer: Using the formula for future value (FV) of a single sum:

FV = PV x (1 + r)^n

where PV is the present value, r is the annual interest rate, and n is the number of years, we can calculate the FV of the investment:

FV = 422 x (1 + 0.067)^4

FV = 538

Therefore, the FV of the $422 investment at the end of four years is $538.

stonks

Step-by-step explanation: