Question
You invest $3,000 for three years at 12 percent. a. What is the value of your investment after one year? Multiply $3,000 1.12. Value of
You invest $3,000 for three years at 12 percent. |
a. | What is the value of your investment after one year? Multiply $3,000 1.12. |
Value of investment | $ |
b. | What is the value of your investment after two years? Multiply your answer to part a by 1.12. (Round your answer to 2 decimal places.) |
Value of investment | $ |
c. | What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer. (Round your answer to 2 decimal places.) |
Value of investment | $ |
d. | Confirm that your final answer is correct by going to Appendix A (future value of $1), and looking up the future value for n = 3, and i = 12 percent. Multiply this tabular value by $3,000 and compare your answer to the answer in part c. There may be a slight difference due to rounding. (Enter the answer computed using the Appendix table factor.) |
Future value | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started