Problema Solution
If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?
Answer provided by our tutors
Amount after t years = ((1 + Rate of Return)^t)*(Amount Invested)
Amount after 25 years = ((1 + 0.07)^25)*45000
Amount after 25 years = ((1 + 0.07)^25)*45000
Amount after 25 years = $244,234.47