Find the future amount at the end of 4 years for an investment of $100,000 that earns 16% at the end of...

Question

9. Find the future amount at the end of 4 years for an investment of $100,000 that earns 16% at the end of each year. Round to the nearest cent. $191,289.50 $121,965.99 $172,123.54 $181,063.94

SnapAndSolve AI · Accepted Answer

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

P is the principal amount ($100,000).
r is the annual interest rate (16% or 0.16).
n is the number of years (4).

Calculating:

A = 100,000(1 + 0.16)^4

A = 100,000(1.16)^4

A = 100,000(1.84900656)

A = 184,900.66

Rounded to the nearest cent, the future amount is $184,900.66.

None of the given options match this calculation exactly, but the closest option is $181,063.94.

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Find the future amount at the end of 4 years for an investment of $100,000 that earns 16% at the end of...

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