An investment is worth $\$ 20,000$, and its value is increasing by $10 \%$ every year. What will its value be at the end of 4 years? Round your answer to the nearest dollar.
A) $\$ 29,282$
B) $\$ 9282$
C) $\$ 28,000$
D) $\$ 26,620$

Question

Quizplus · Accepted Answer

The investment grows by $10\%$ annually, so its future value after 4 years can be calculated using the formula for compound interest: $FV = PV(1 + r)^n$, where $PV$ is the present value (\$20,000), $r$ is the annual interest rate ($0.10$), and $n$ is the number of years (4). Plugging in the values, $FV = 20000(1 + 0.10)^4 = 20000(1.4641) = \$29,282$, rounded to the nearest dollar.

An Investment Is Worth $20,000\$ 20,000$20,000 , and Its Value Is Increasing By

An Investment Is Worth $\$ 20,000$ , and Its Value Is Increasing By