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Chapter 4: Q5BP-d. (page 282)

If you invest $9,000 today, how much will you have

d. In 25 years at 14 percent (compounded semiannually)?

Short Answer

Expert verified

The futurevalue is $265,113.23.

Step by step solution

01

Identification of the required information

Present value (PV) = $9,000

Interest Rate (i) = 14%

Period (n) = 25 year

Semi-annual periods per year (t) = 2

02

Future value (FV)

FV=PV×1+itn×t=$9,000×1+14%225×2=$265,113.23

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