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25 July, 17:13

B) Kathy recently graduated college and her grandparents give her $10,000 as a graduation present. She can

either spend it all or invest it in a 10yr Mutual Fund paying 9.75% per year. Calculate the future value of her

mutual fund:

+5
Answers (1)
  1. 25 July, 20:32
    0
    The future value would be $21,489.51

    Explanation:

    Computation of future value (FV) is as follows:

    FV is computed using the formula, FV = p (1 + r/100) ∧t

    Where p is the principal amount; r is the rate of return, and t is the investment period.

    P = 10,000; r = 0.0975, and t = 10

    FV = 10,000 (1+0.0975) ∧10

    FV = $21,489.51
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Home » Business » B) Kathy recently graduated college and her grandparents give her $10,000 as a graduation present. She can either spend it all or invest it in a 10yr Mutual Fund paying 9.75% per year. Calculate the future value of her mutual fund:
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