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Growing Investment Amounts

1. I invested $15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years?

2. To what amount would the investment grow in 3 years if the fund earns 8% compounded semiannually?

3. I need $25,000 in 4 years. What amount must be invested today if his investment earns 12% compounded annually?

4. I just sold an investment that was owned for $15,000. I purchased the investment 4 years ago for $9,500. During the period that I held the investment it paid income of $2,000 for 3 years. What is my investment yield for the 4 years she held the investment?

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1. I invested $15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years?
Present value 15,000
Discount rate 8%
Compounding 1
Years 3
Future value 18,896 =15,000 * ((1 + ...

Solution Summary

The expert examines growing investment amounts. The amount which must be invested today if his investment earns 12% compounded annually is determined.

$2.19