Future value: Wes Ottey would like to buy a condo in Florida in six years. He is looking to invest $75,000 today in a stock that is expected to earn a return of 18.3 percent annually. How much will he have at the end of six years? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

Using the formula FV = PV x (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years, we get:

FV = $75,000 x (1 + 0.183)^6
FV = $205,575

Therefore, Wes Ottey will have $205,575 at the end of six years if he invests $75,000 today in a stock that is expected to earn a return of 18.3 percent annually.

Future Value: Wes Ottey Would Like to Buy a Condo