The future value $5000 invested for 3 years at a rate r compounded annually is given by S=5000(1+r)3. Complete parts (a) through (d). a) Complete the table below to determine the future value of $5000 at certain interest rates. Rate4%5%7.25%10.5%Future Value$?$?$?$? (Type integers or decimal rounded to the nearest hundredth.)

Question

Arnold Odonnell · Accepted Answer

Step 1  Future value is calculate by using this formula:  FV=PV(1+r)n  r is interest rate and n is time period.  Step 2  a) Present value =$5000  Time period =3 year  - Future value at 4% interest rate  FV=PV(1+r)t  FV=5000(1+0.04)3  =$5624.32  - Future value at 5% interest rate  FV=5000(1+0.05)3  =$5788.13  - Future value at 7.25% interest rate  FV=5000(1+0.0725)3  =$6168.25  - Future value at 10% interest rate  FV=5000(1+0.10)3  =$6655

The future value $5000 invested for 3 years at a rate r compounded annually is g

Answered question

Answer & Explanation

New Questions in Pre-Algebra