Suppose the current interest rate is 8.5%,what is the future value of a $15 million investment in 10 years?

Question

Quizplus · Accepted Answer

We can use the formula for future value of a single sum:

FV = PV x (1 + r)^n

where PV is present value, r is the interest rate, and n is the number of periods.

In this case, PV = $15 million, r = 8.5%, and n = 10.

FV = 15,000,000 x (1 + 0.085)^10

FV = 33,915,256

Therefore, the future value of the investment is $33.915 million, so the best choice is B.

Suppose the Current Interest Rate Is 8