Question

If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 10 years if the funds were deposited in an account earning 4 percent?

Answer 1

Answer:

he future value of that amount over 10 years is $12,006.11.

Explanation:

The Future Value, FV of the Fund is calculated as follows :

Pv = $0

Pmt = -$1,000

P/yr = 1

N = 10

r = 4%

Fv = ?

Using a Financial Calculator, the Future Value, FV is $12,006.11.