If you invest $5,000 today at an annual interest rate of 5.35%,how much money will you have for your daughter's college education in 18 years?
A)$5,603
B)$10,000
C)$12,776
D)There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

To calculate the future value of the investment, we can use the formula: FV = PV x (1 + r)^n, where PV is the present value (the initial investment), r is the annual interest rate (as a decimal), and n is the number of periods (in this case, the number of years). Plugging in the values, we get FV = 5,000 x (1 + 0.0535)^18 = $12,776. Therefore, the best choice is C.

If You Invest $5,000 Today at an Annual Interest Rate