Suppose Kay inherits $250,000, which she invest today at a rate of return of 9% compounded annually. How much will Kay's investment be worth after 25 years?

A. $21,175,224.06
B. $1,929,687.00
C. $6,250,000.00
D. $2,155,770.17

Respuesta :

Answer:

D.$2,155,770,17

Step-by-step explanation:

Based on the amount inherited, the period of compounding, and the interest rate, Kay would have D. $2,155,770.17.

The amount that Kay has in 25 years can be found by the formula:

= Amount x ( 1 + rate) ^ number of periods

Solving would give:

= 250,000 x ( 1 + 9%) ²⁵

= $2,155,770.17

In conclusion, the investment would be worth $2,155,770.17.

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