If you invest $9,000 today, how much will you have: Use Appendix A as an approxi

Question

If you invest $9,000 today, how much will you have: Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. In 2 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places. In 7 years at 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) In 25 years at 14 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) In 25 years at 14 percent (compounded semiannually)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Explanation / Answer

Answer: Calculation of the FV:

a. in 2 years at 9%.

FV=P(1+i)n

=$9000(1+0.09)2

=$10692.9

b.In 7 years at 12%

FV=9000(1+0.12)7

=$19896.1326

c. In 25 years at 14%

=9000(1+0.14)25

=238157.24

d. In 25 years at 14% semiannually

=9000*(1+0.07)50

=265113.23

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