Answer:
his investment will be worth $39,944 at the end of 12 years.
Explanation:
FV = PV(1 + i)^n
= $4,700 + $4,700*PVAF(7%,11 years)
= $4,700 + $4,700*7.49867
= $4,700 + $35,244
= $39,944
Therefore, his investment will be worth $39,944 at the end of 12 years.
Answer:
$ 10861.7
Explanation:
Amount at the end of 12 yrs should be gotten by compound interest.
A = p(1+ r/n)^nt
= 4700(1 + (0.07/12))^ (12*12)
= 4700(1+(5.833*10^-3))^(144)
A = 4700(1.0058333)^(144)
A = 4700*2.31
A = 10861.7
A=$ 10861.7
