A smart business sets aside 1 million dollars, and puts the cash into a contingency fund....
A smart business sets aside 1 million dollars, and puts the cash into a contingency fund. The company never touches the money for 2 years. How much money will they have when 2 years is up? The account grows at 10% a year.
Homework Answers
Ans: $1,210,000
Explanation:
F = P ( 1 + i )n
= $1000000 ( 1 + .10 )2
= $1000000 ( 1.10)2
= $1000000 * 1.21
= $1,210,000
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