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You are interested in investing $15,000, a gift from your grandparents, for the next four years in a mutual fund that will earn an annual return of 8 percent. What will your investment be worth at the end of four years? (Round to the nearest dollar.) $20,221 $20,407 $18,089 $18,816

Respuesta :

Answer:

$20,407

Explanation:

In this question, we have to find out the future value that is shown below:

Future value = Present value × (1 + rate)^number of years

where,

Present value = $15,000

Annual Rate of return = 8%

Number of years = 4 years

So, the future value

= $15,000 × (1 + 8%)^24

= $15,000 × 1.36048896

= $20,407

Basically we applied the future value formula for the above computation.

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