Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
The future value of the mutual fund after 15 years is equal to $1,256.55.
Given the following data:
- Principal = $5,000
- Interest = 3.5% = 0.035
- Time = 15 years
To find the future value of the mutual fund after 15 years:
Mathematically, compound interest is given by the formula:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
- A is the future value.
- P is the principal or starting amount.
- r is annual interest rate.
- n is the number of times the interest is compounded in a year.
- t is the number of years for the compound interest.
Substituting the given parameters into the formula, we have;
[tex]A = 750(1 + 0.035)^{15}\\\\A = 750(1.035)^{15}\\\\A = 750(1.6754)[/tex]
Future value, A = $1,256.55
Read more: https://brainly.com/question/22339845
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.