Question

Candace invested $16,000 into a fund earning 11.0% interest compounded 12 times per year. Calculate her...

Candace invested $16,000 into a fund earning 11.0% interest compounded 12 times per year. Calculate her balance after 16 years.

Round your answer to the nearest dollar. Do not include a dollar sign.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We are required to compute the Future value of current investment

Given information

Investment

16,000.00

Interest rate

11%

Compounding frequency

12

Rate per compounding period (Interest rate / compounding frequency)

0.92%

No. of periods

               16

No. of compounding periods (no. of periods x compounding frequency)

             192

FV factor ---> Formula --> (1+rate per compounding period)^no. of compounding periods

--> (1+0.92%)^192

5.77

Balance after 16 years (Investment amount x FV factor) rounded off nearest dollar

92,256

Hope this helps you answer the question. Please leave your feedback or rating on the answer.

Thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Evans invested $50,000 today in a mutual fund earning 5% interest, compounded annually. Round your answer...
Evans invested $50,000 today in a mutual fund earning 5% interest, compounded annually. Round your answer to the nearest whole number (for example, enter 51 for 50.5555). Do not use negative signs with any of your answers. a. What is the value of the mutual fund in 5 years? Answer b. What is the value of the mutual fund in 20 years? Answer
Helen invested the profit of her business in an investment fund that was earning 3.25% compounded...
Helen invested the profit of her business in an investment fund that was earning 3.25% compounded monthly. In 3 years, she began withdrawing $3,500 from this fund at the end of every 6 months. If the money in the fund lasted for the next 4 years, how much money did she initially invest in the fund?
Liz invested the profit of her business in an investment fund that was earning 3.25% compounded...
Liz invested the profit of her business in an investment fund that was earning 3.25% compounded monthly. In 3 years, she began withdrawing $3,500 from this fund at the end of every 6 months. If the money in the fund lasted for the next 4 years, how much money did she initially invest in the fund?
If $2000 is invested at an interest rate of 2.5% per year, compounded daily, find the...
If $2000 is invested at an interest rate of 2.5% per year, compounded daily, find the value of the investment after the given number of years. (Round your answers to the nearest cent.) 2 years. 3 years and 6 years.
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual...
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual fund was 5% compounded quarterly for the first three years and 3% compounded semi-annually for the next four years. At the end of the seven years, Jeffrey's mutual fund had accumulated to $35,198.50. a. Calculate the amount that was in the mutual fund after the first three years when the interest rate changed. Round to the nearest cent b. Calculate the amount that was...
if you invested $5000 at 4% interest compounded monthly and added $500 in month 12, 24,...
if you invested $5000 at 4% interest compounded monthly and added $500 in month 12, 24, 36, and 48; how much would you have after 10 years? Round to the nearest dollar.
1. a) I invested $5,000 into an account earning 5% interest compounded monthly and left it...
1. a) I invested $5,000 into an account earning 5% interest compounded monthly and left it there for 5 years. After the 5 years were up I transferred the money from that account into a new account that earned 6% interest compounded quarterly for the next 10 years. How much total money would I have at the end of the 15 years? b) If I had left the $5,000 in the initial account earning 5% compounded monthly how long, to...
1a.) Determine when, to the nearest year, $2,000 invested at 5% per year, compounded daily, will...
1a.) Determine when, to the nearest year, $2,000 invested at 5% per year, compounded daily, will be worth $10,000. 1b.)Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 6% per year, compounded daily (assume 365 days/year), after 12 years 1c.) Compute the specified quantity. The simple interest on a $2,000 loan at 2% per year amounted to $360. At what time t...
Suppose $5000 is invested at an annual interest rate of 4.15% if compounded continuously. a) Compute...
Suppose $5000 is invested at an annual interest rate of 4.15% if compounded continuously. a) Compute the balance at the end of 16 years. b) What is the doubling time (round to the nearest year)? c) What will be the balance at the end of 16 years if computed quarterly?
How much will $100 grow to if invested at a continuously compounded interest rate of 12%...
How much will $100 grow to if invested at a continuously compounded interest rate of 12% for 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future Value = How much will $100 grow to if invested at a continuously compounded interest rate of 7% for 12 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future Value =
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT