Homework Sourse1000 points How much will you have in the account in 6 years
10.00 points How much will you have in the account in 6 years? (Do not round intermediate calculations and round your answer to 2 How much will you have in the account in 12 years? (Do not round intermediate calculations and round your answer Future value
Solution
Given is a problem of future value of money. Future value of money is calculated below:
Future value in 6 years:
Future value in 12 years:
Future value in 24 years
*Hope the above explanation helps, please comment if further explanation is required. Your rating is appreciated*
| Future value | FV= | PV * (1+rs/m)^mN | |
| Present value | PV= | 5,900 | |
| Stated rate of interest | rs= | 6.20% | |
| Number of years | N= | 6 | |
| Frequency of compounding per year | m= | 365 | |
| Future value | FV= | 5900 *(1+ 0.062/365)^(6*365) | |
| FV= | 8,558.46 |
