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Q4) Sum of money Q will be received 6 years from now. At 5% annual interest. the present worth now of Q is $60. At the same interest rate, what would be the value of Q in 10 years?

Respuesta :

drjack60

Answer: FV = Q PV = $60 FV = PV*(1+i)^n =>Q = 60*(1.05)^6 =>Q = $80.40573844...

Explanation:

The value of Q in 10 years will be $97.73367761.

What is interest rate?

An interest rate is the amount of interest due per period proportional to the principal amount.

FV = Q

PV = $60

FV = PV x (1+i)ⁿ

Q = 60 x (1.05)⁶

Q = $80.40573844

The future value  of Q in 10 years will be

FV = 60 x (1.05)¹⁰

FV = $97.73367761

Thus, the future value of Q in 10 years is  $97.73367761.

Learn more about interest rate.

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