Suppose that over the past 20 years the average annual return on-00406
This subjective question is related to the book/course
vu cs201 Introduction to Programming.
It can also be found in
vu cs201 Mid Term Solved Past Paper No. 10.
Question 1: Suppose that over the past 20 years, the average annual return on investments has been 12%. For each dollar invested at the beginning of the period, How much money would investors have at the end of 20 years?
I = 12% or .12
AMT = 1 $
FV = ?
FV = amt * FVIF= [ (1+i)^n-1 ]/i
FV IF = [(1.12)^20 - 1]/.12 = 72.05
FV = 1*72.05 = 72.05
Answer:
N= 20I = 12% or .12
AMT = 1 $
FV = ?
FV = amt * FVIF= [ (1+i)^n-1 ]/i
FV IF = [(1.12)^20 - 1]/.12 = 72.05
FV = 1*72.05 = 72.05
