Homework SourseIf you lend 3000 for 6 years at 10 interest how much will yo
If you lend $3000 for 6 years at 10% interest, how much will you receive at the end of the 6-year period if the interest is compunded annually?
Solution
5314.68
Future value at the end of 6th year =$5314.68
| Amount Lend | Year | FV @ 10% Pa | Future value |
| 3000 | 0 | 1 | 3000.00 |
| 3000 | 1 | 1.1 | 3300.00 |
| 3000 | 2 | 1.21 | 3630.00 |
| 3000 | 3 | 1.331 | 3993.00 |
| 3000 | 4 | 1.4641 | 4392.30 |
| 3000 | 5 | 1.61051 | 4831.53 |
| 3000 | 6 | 1.771561 | 5314.68 Future value at the end of 6th year =$5314.68 |
