A recent graduate took her first job with an investment bank with a signing bonus of $4,000.00. She decides to invest the bonus into a mutual fund that pays 8.00% per year on average. What will be the value of this investment in 20.00 years?
HI
We will use compounded interest formula to find out the value of investment after 20 years
Here Preset Value P = $4,000
Time t = 20 years
r = 8%
Future value F=?
F = P*(1+r)^t
F = 4000*(1+8%)^20 = 4000*1.08^20 = $18,643.83
Thanks
A recent graduate took her first job with an investment bank with a signing bonus of...
A recent graduate took her first job with an investment bank with a signing bonus of $4,000.00. She decides to invest the bonus into a mutual fund that pays 8.00% per year on average. What will be the value of this investment in 20.00 years? Answer Format: Currency: Round to: 2 decimal places.
A recent graduate took her first job with an investment bank with a signing bonus of $4,000.00. She decides to invest the bonus into a mutual fund that pays 8.00% per year on average. What will be the value of this investment in 20.00 years? Answer Format: Currency: Round to: 2 decimal places.
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