Question

Q FIN 303- Chacter 5: Time X Chapter 5 FIN 303 Flashcard * Mathematics of France x The tme value of money con X Bugen.wileyplus.com/edugen/student/mainfr.uni * Wiley PLUS: My Wiley PLUS I Help Contact Us | Log ou Parrino, Fundamentals of Corporate Finance, 4e CORPORATE FINANCE ( ctice Assignment Gradebook ORION Downloadable eTextbook ment FULL SCREEN PRINTER VERSION H ACK NEXT Problem 5.01 Paul White is planning to invest $27,000 today in a mutual fund that will provide a return of 9 percent each year. What will be the value of the investment in 10 Years? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest enny.) Value of investment after 10 years Click if you would like to Show Work for this question: Open Show Work By accessing this question Assistance, you will learn while you eam points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt. in to brushess cakutsi doc .

Answer 1

Here principal is(P)- $27,000

Rate of interest(r) -9%

Time (t)-10 years

Amount = P(1+r)^t

Amount = $27,000(1+9%)^10

Amount = $27,000(1+0.09)^10= $27,000(1.09)^10= $27,000(2.367363)= $63,918.8191

Paul white planning to invest $27,000 would get value of investment after 10years $ 63,919