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7 August, 09:29

Angler's Edge, worth $12 million, is expected to grow at 5% per year compounded annually for 7 years.

Find the future value to the nearest million.

$16 million

$18 million

$17 million

$19 million

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  1. 7 August, 11:45
    0
    Ans: $16 million

    Explanation:

    First you need to find the 5% of $12 million:

    12*5/100 = $0.6 million

    Now as it is compounded annually for 7 years:

    12 + (7 * 0.6) = $16.2 million

    So the nearest one is $16 million.
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