Assuming an interest rate of 10%, if you invest a lump sum of $4,000 now, the balance of your investment in 7 years will be closest to

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Quizplus · Accepted Answer

The future value of a lump sum investment can be calculated using the formula FV = PV * (1 + r)^n, where PV is the present value ($4,000), r is the interest rate (10% or 0.10), and n is the number of years (7). Plugging in the values, FV = 4000 * (1 + 0.10)^7 = 4000 * 1.9487171 ≈ $7,796.

Assuming an Interest Rate of 10%, If You Invest a Lump