You receive $20,000 from your grandmother as a graduation gift. You plan to invest this at...

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Question

You receive $20,000 from your grandmother as a graduation gift. You plan to invest this at...

You receive $20,000 from your grandmother as a graduation gift. You plan to invest this at an annual interest rate of 6.5 percent. How much money will you have 12 years now?

Group of answer choices

$41,220.63

$35,782.89

$42,581.93

$37,542.75

business finance

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Answer 1

Answer #1

c. $42,581.93

FV = PV(1 + r)^t

FV = $20,000(1 + 0.065)¹²

FV = $42,581.93

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Answer 2

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