If you put $10,000 in a mutual fund today that guarenteed to return 14% interest how...

Question

Question

If you put $10,000 in a mutual fund today that guarenteed to return 14% interest how much would your fund be worth in 10 years? show your work please

Answer 1

Answer #1

Answer

Formula :

A = P(1 + r)n

where A = amount after n years that we have to calculate, P = Initial value = 10,000, r = intrest rate = 14% = 0.14 and n = time period = 10

=> A = 10,000(1 + 0.14)10

=> A = 37072.21

Hence, In 10 years your fund will be worth $37072.21

Answer 2

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