Question

10. What will be the amount accumulated by each of the following present investments? a. $5,000 in 8 years at 13% compounded annually. Answer: $13,290 b. $1,500 in 15 years at 15% compounded annually. c. $20,000 in 38 years at 16% compounded annually. d. $3,500 in 70 years at 9% compounded annually. e. $5,500 in 35 years at 10.5% compounded annually.

          10. What will be the amount accumulated by each of the following present
investments?
a. $5,000 in 8 years at 13% compounded annually. Answer: $13,290
b. $1,500 in 15 years at 15% compounded annually.
c. $20,000 in 38 years at 16% compounded annually.
d. $3,500 in 70 years at 9% compounded annually.
e. $5,500 in 35 years at 10.5% compounded annually.

10. What will be the amount accumulated by each of the following present
investments?
a. 5,000 in 8 years at 13% compounded annually. Answer: $13,290
b.1,500 in 15 years at 15% compounded annually.
c. 20,000 in 38 years at 16% compounded annually.
d.3,500 in 70 years at 9% compounded annually.
e. 5,500 in 35 years at 10.5% compounded annually.

Added by Jose Carlos W.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Roee Shalom

Step 1

Using the formula for compound interest, the future value (FV) can be calculated as: FV = PV * (1 + r)^n Where: PV = Present Value (initial investment) r = interest rate per period n = number of periods In this case, PV = $5,000, r = 13% (or 0.13), and n = Show more…

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Only (e) investments? $5,000 in 8 years at 13% compounded annually. Answer: $13,290. a. $1,500 in 15 years at 15% compounded annually. b. $20,000 in 38 years at 16% compounded annually. c. $3,500 in 70 years at 9% compounded annually. d. $5,500 in 35 years at 10.5% compounded annually.