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Homework answers / question archive / How much will $1,000 invested at the end of each year grow to in 5 years, assuming an interest rate of 10% compounded annually EV of $1

How much will $1,000 invested at the end of each year grow to in 5 years, assuming an interest rate of 10% compounded annually EV of $1

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How much will $1,000 invested at the end of each year grow to in 5 years, assuming an interest rate of 10% compounded annually EV of $1. EV. 1. EVA 51 and PVA of $. (Use appropriate factor(s) from the tables provided.) Multiple Choice $24.420 519.326 $20,000 $25,420

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 $ 24,420    
         
Future Value of annuity = Annuity * FVA = $ 4,000 * 6.105 = $ 24,420
         
We can also calculate using a table    
         
Year Annuity FVF @ 10% Future Value  
1               4,000               1.000                  4,000  
2               4,000               1.100                  4,400  
3               4,000               1.210                  4,840  
4               4,000               1.331                  5,324  
5               4,000               1.464                  5,856  
                  6.105                24,420

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