What will be the value of a deposit of $10,000 in 12 years if the annual...

Question

Question

What will be the value of a deposit of $10,000 in 12 years if the annual interest rate is 6%.

Answer 1

Answer #1

The Value of Deposit at the end of 12^th Year

The Value of Deposit at the end of 12^th Year is the Future Value of $10,000 compounded annually at 6% Interest Rate for 12 years

The Value of Deposit = P x (1 + r) ⁿ

= Deposit Amount x (1 + Interest Rate) ⁿ

= $10,000 x (1 + 0.06) ¹²

= $10,000 x 2.012196

= $20,121.96

“Hence, The Value of Deposit at the end of 12th Year would be $20,121.96”

Answer 2

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