What will $248,000 grow to be in 12 years if it is invested today in an account with an annual interest rate of 15%? $1,326,862.03 $1,061,489.62 $1,764,726.49 $1,502,007.81 $2,202,590.96

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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What will $248,000 grow to be in 12 years if it is invested today in an account with
an annual interest rate of 15%?
$1,326,862.03
$1,061,489.62
$1,764,726.49
$1,502,007.81
$2,202,590.96
Transcribed Image Text:What will $248,000 grow to be in 12 years if it is invested today in an account with an annual interest rate of 15%? $1,326,862.03 $1,061,489.62 $1,764,726.49 $1,502,007.81 $2,202,590.96
Expert Solution
Step 1
Future Value = P(1+r/n)^nt
Where P = Principal = $248,000
R = Rate on interest = 15%
N = number of times interest applied per time period =1
T= Time = 12 Years
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