Problema Solution
If you inhereted $25,000 today and invested all of it in a security that paid a 7% rate of return how much would you have in 25 years?
Answer provided by our tutors
We need to find the future value FV
FV = PV(1 + i)^t
PV = $25,000
i = 7% = 0.07
t = 25 years
FV = 25000*(1 + 0.07)^25
FV = $135,685.82
in 25 years u will have $135,685.82.