Find the future amount at the end of 3 years for an investment of $50,000 that earns 13% at the end of each...

Question

6. Find the future amount at the end of 3 years for an investment of $50,000 that earns 13% at the end of each year. A. $72,144.85 B. $77,725.75 C. $72,625.25 D. $70,121.15

SnapAndSolve AI · Accepted Answer

To find the future amount, use the formula for compound interest: A = P(1 + r)^n, where:

P is the principal amount ($50,000).
r is the annual interest rate (13% or 0.13).
n is the number of years (3).

Plugging in the values:

A = 50000(1 + 0.13)^3 = 50000(1.13)^3 ≈ 50000 * 1.43987 ≈ 71,993.50

The closest option is A. $72,144.85.

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Find the future amount at the end of 3 years for an investment of $50,000 that earns 13% at the end of each...

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