1. 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.)

Present value of the investment = PV = $15,000 Return on mutual fund = i = 8% No. of years = n = 4

Solution: FV₄ = PV (1 + i)ⁿ =