What is the future value of $100,000 invested to an annual rate of 12% after 40...

Question

Question

What is the future value of $100,000 invested to an annual rate of 12% after 40 years?

Answer 1

Answer #1

Future Value = Present Value*((1+r)^t)
where r is the interest rate that is 12% and t is the time period in years that is 40.
Present value = 100000.

Future value = 100000*((1.12)^40)
Future value = 100000*(93.05097)
Future value = 9305097.

The future value is $9305097.

Answer 2

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