Question

Jacqueline is 19 years old and earned $20 000 last year after taxes. She decides to invest $2500 in mutual funds which averages 11.5% growth per year, with interest compounded annually. a) Assuming the growth remains the same, find the future value of the investment after 1 year. b) If she continues to invest $2500 annually, calculate the total value of her investments after 6 investments

Name: jacqueline is 19 years old and earned 20 000 last year after taxes she decides to invest 2500 in mutual funds which averages 115 growth per year with interest compounded annually a assuming the growth
Uploaded: 2024-01-17T20:00:54-08:00
Duration: 3 min 4 s
Channel: James Kiss
Description: jacqueline is 19 years old and earned 20 000 last year after taxes she decides to invest 2500 in mutual funds which averages 115 growth per year with interest compounded annually a assuming the growth

          Jacqueline is 19 years old and earned $20 000 last year after taxes. She decides to invest $2500 in
mutual funds which averages 11.5% growth per year, with interest compounded annually.
a) Assuming the growth remains the same, find the future value of the investment after 1 year.
b) If she continues to invest $2500 annually, calculate the total value of her investments after 6
investments

Added by Hardeep S.

Applied Calculus

Deborah Hughes-Hallett, Patti Frazer… 5th Edition

Chapter 6

Instant Answer

Solved by Expert James Kiss

01/17/2024

Step 1

5% or 0.115, n = 1 (since interest is compounded annually), and t = 1 year. So, FV = $2500 * (1 + 0.115/1)^(1*1) = $2500 * (1.115) = $2787.50 So, the future value of the investment after 1 year is $2787.50. Show more…

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Jacqueline is 19 years old and earned $20 000 last year after taxes. She decides to invest $2500 in mutual funds which averages 11.5% growth per year, with interest compounded annually. a) Assuming the growth remains the same, find the future value of the investment after 1 year. b) If she continues to invest $2500 annually, calculate the total value of her investments after 6 investments