Altman Company will invest €500,000 today. The investment will earn 6% for 5 years, with no funds withdrawn. In 5 years, the amount in the investment fund is

Question

Quizplus · Accepted Answer

Using the compound interest formula,

FV = PV x (1+r)^n

where FV is the future value, PV is the present value, r is the interest rate, and n is the number of years.

Plugging in the given values,

FV = €500,000 x (1+0.06)^5

FV = €669,115

Therefore, the amount in the investment fund after 5 years is €669,115.

Altman Company Will Invest €500,000 Today