Ten years ago, Emma purchased an investment for $22,500. The investment earned 7 percent interest each...
Ten years ago, Emma purchased an investment for $22,500. The investment earned 7 percent interest each year. Using the equation method, what is the worth of the investment today?
Homework Answers
This question requires application of basic time value of money function, according to which:
FV = PV * (1 + r)n
FV = $22,500 * (1 + 7%)10
FV = $22,500 * 1.967151
FV = $44,260.91 --> Worth of investment today
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