Answered: What is the future value (FV) of…

What is the future value (FV) of $50,000 in six years, assuming the interest rate is 4% per year? A. $53,776 B. $56,939 C. $32,500 D. $63,266

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

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Question

Ques
What is the future value (FV) of $50,000 in six years, assuming the interest rate is 4% per year?
A. $53,776
B. $56,939
C. $32,500
D. $63,266

Expert Solution

Step 1

The value of amount available at current date on the specific date in future when invested at constant interest rate is called future value(FV). It is ascertained by compounding of the amount as $50,000 over 6 years using 4% interest rate.

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