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2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 8%?

Respuesta :

anthougo

In 12 years, the fund that the grandfather placed $5,000 at an 8% rate of return will be worth $12,590.85.

What is the future value?

The future value refers to the value that investment yields at a compounded interest rate in the future.

The future value can be computed using an online finance calculator as follows, the future value formula, or the future value table.

Data and Calculations:

N (# of periods) = 12 years

I/Y (Interest per year) = 8%

PV (Present Value) = $5,000

PMT (Periodic Payment) = $0

Results:

FV = $12,590.85

Total Interest = $7,590.85

Thus, in 12 years, the fund that the grandfather placed $5,000 at an 8% rate of return will be worth $12,590.85.

Learn more about future values at https://brainly.com/question/24703884

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