Question

To what amount will the following investment accumulate?
$16,559, invested today for 39 years at 18.39 percent, compounded monthly.

Round answer to two decimal places. Thank you.

Answer 1

Calculate the future value of amount as follows:

- * vin fo =FV(18.39%/12,39* 12,,-16559) ? X Function Arguments Rate 18.39%/12 Nper 39*12 Pmt = 0.015325 = 468 = number = -16559 Py-16559 * Type = number = 20427322.84 Returns the future value of an investment based on periodic, constant payments and a constant interest rate. Type is a value representing the timing of payment: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted. Formula result = 20427322.84 Help on this function D OK Cancel

Future value = $20,427,322.84

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Alternative method:

Future value = Present value * (1+ rate)^periods

Future value = $16,559*(1+(18.39%/12))^(39*12)

Future value = $20,427,322.84