What's the future value of a $1000 investment compounded at 8% semiannually for five years?
Answer and Explanation:
Answer and Explanation: The principal value is $1,000. The future value of $1,000 continuously compounded for five years at a stated annual interest rate of 12 percent is $1,822.12.
Future Value Using Simple Annual Interest
For example, assume a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually. In this case, the FV of the $1,000 initial investment is $1,000 × [1 + (0.10 x 5)], or $1,500.
So, the value of the $1,000 investment after 8 years of losing 5% each year would be approximately $663.42. This calculation takes into account the compounding effect of the annual losses, resulting in a reduced investment value over time.
Answer and Explanation:
Since it is compounded semi-annually, the interest rate would be 8% / 2 = 4%. For semi-annual, the number of years would be 17.7 / 2 = 8.8. Hence, it will take 8.8 years to double the investment.
Experts have been vetted by Chegg as specialists in this subject. >>>>> PV = Present Value = $1,000 n = 5 years r = Annual interest rate = 12% Future Value = PV * (1+r)^n = $1,000 * (1+12%)^5 = $1,000 * 1.762342 = $1,762.342 Future Value is $1,762.34 >>>> PV = Present Value = $1,000 n = 10 years r = Annual interest…
Therefore, the future value of the $1,000 invested for 15 years at a rate of 5% will be $1,000 × (1 + 0.05)15. Plugging these values into the formula results in Future Value = $1,000 × (1.05)15 = $2,079.
Answer and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.
For example, with an initial balance of $1,000 and an 8% interest rate compounded monthly over 20 years without additional deposits, the calculator shows a final balance of $4,926.80. The total compound interest earned is $3,926.80.
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
What is the future value of $1000 after six months earning 12% annually?
Correct Answer: Option C) $1,058.30.
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
Expert-Verified Answer
Final answer: To reach $7,500 with an 8% interest rate, it would take approximately 9.7 years. Using a calculator, we find that time is approximately 9.7 years.
Let's say your interest rate is 8%. 72 ∕ 8 = 9, so it will take about 9 years to double your money.
Answer and Explanation: The investment will take 14.27 years to triple at 8% interest rate.
Answer and Explanation:
Since interest is compounded quarterly we first estimate the number of quarters then convert to years. The investment will be doubled in 8 years and 274 days.
Using an annual compounding interest rate of 5% per year, after one year, your $1,000 would earn $50 in interest, bringing your total balance to $1,050.
The future value is $75,401.
| Investment Return | Future Value of 10,000 in 10 Years |
|---|---|
| 9.25% | 24,222 |
| 9.5% | 24,782 |
| 9.75% | 25,354 |
| 10% | 25,937 |
| Investment Return | Future Value of 1,000 in 40 Years |
|---|---|
| 5.75% | 9,359 |
| 6% | 10,286 |
| 6.25% | 11,302 |
| 6.5% | 12,416 |
How much money will I have if I invest 500 a month for 10 years?
| Rate of return | 10 years | 30 years |
|---|---|---|
| 4% | $72,000 | $336,500 |
| 6% | $79,000 | $474,300 |
| 8% | $86,900 | $679,700 |
| 10% | $95,600 | $987,000 |
If you invest $10,000 and make an 8% annual return, you'll have $100,627 after 30 years. By also investing $500 per month over that timeframe, your ending balance would be $780,326. Exchange-traded funds (ETFs) and mutual funds are both excellent investment options.
The future value of $800 at 8 percent after six years equals $1,269.50. Where, PV = Present value = $800. i = interest rate = 8%
Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.
Answer and Explanation: The future value of the deposit will be worth $2,589.52 in five years.
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