Ask Question
BusinessBusiness
3 July, 17:08

You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money will you have in 31 years

+4
Answers (1)
  1. 3 July, 18:43
    0
    Money in 31 years will be = $1,648,641.73

    Explanation:

    As per the given dа ta:

    Inherit Money (PV) = $114,000

    Interest rate (i) = 9% p. a (Compounding is done annually as said in the question)

    Holding period (n) = 31 years.

    Money to have in is the Future value (FV) = ?

    We can use following time value formula to calculate the future value -

    FV = PV * (1 + i) ^ n

    putting the values:

    FV = 114,000 * (1 + 0.09) ^ 31

    FV = 114,000 * (14.461769531353)

    Thus,

    Future Value is = $1,648,641.73
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Total surplus in a market is equal to a. value to buyers - amount paid by buyers. b. amount received by sellers - costs of sellers. c. value to buyers - costs of sellers. d. amount received by sellers - amount paid by buyers.
Answers (1)
In reviewing the accounting records of the transportation services fund, an internal service fund of douglas city, you notice that the fund uses budgetary accounts. this is most likely because
Answers (1)
C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No pages can be printed while the printer is cooling down. C&A's demand rate is 3 pages per minute.
Answers (1)
Supply chain management refers to A. how the firm compensates the employees who work on the firm's internal stages of production. B. the decisions around which stages of production to handle internally and which to buy from others. C.
Answers (1)
Name two occupation suitable for sole proprietorship
Answers (1)
New Questions in Business
What process involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete?
Answers (1)
What opportunities did the rise of corporations offer to different types of ""middle workers"" - those who were neither top executives nor blue-collar laborers?
Answers (1)
Turk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: End of Year Machine A Machine B 1 $ 5,000 $ 1,000 2 4,000 2,000 3 2,000 11,000 Turk Manufacturing uses the net present value
Answers (1)
How is a post from a social media influencer different than a comment from a regular consumer
Answers (2)
An insurance policy written after 1988 that fails to pass the seven-pay test is known as
Answers (1)
Home » Business » You inherit $114,000 today. Rather than spending it, you decide to invest it. If you earn 9% per year (compounded annually), how much money will you have in 31 years
Sign Up Forgot Password?