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If the current rate of interest is 8% APR, then the future value of an investment...

If the current rate of interest is 8% APR, then the future value of an investment that pays $250 per quarter and lasts 20 years is closest to: $20,000 $9936 $18,519 $48,443

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Answer #1

Information provided:

Time= 20 years*4= 80 quarters

Interest rate= 8%/4= 2% per quarter

Quarterly payment= $250

The future value of the investment is calculated by entering the below in a financial calculator:

N= 80

I/Y= 2

PMT= 250

Press the PMT key and FV to calculate the future value of the investment

The value obtained is $48,442.99

Therefore, the future value of the investment is $48,442.99 $48,443.

Hence, the answer is option d.

In case of any further queries, kindly comment on the solution.

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