Question

Gilda plans to invest $3000 in an equity fund every year end beginning this year. The...

Gilda plans to invest $3000 in an equity fund every year end beginning this year. The expected annual return on the fund is 12 percent. She plans to invest for 22 years. What is the present value of Gilda’s investments?

a) $25686

b) $22686

c) $22934

d) $23155

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Answer #1

Solution:-

To Calculate Present value of Gilda's Investment-

Present Value =

Present Value =

Present Value =

Present Value =

Present Value = 3,000 * 7.64465

Present Value = $22,934

The Correct Answer is point C i.e. $22,934

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