Answer:
$13,310
Explanation:
The investment would be 100% = $1000 * 100% / 10% = $10,000
So this is the amount that would be deposited today to earn $1000 each year which is 10% of the amount deposited today.
The Future Value is given as under:
Future Value = Present Value * (1 + r)^n
Here,
Present value is $10,000
r is 10%
and n is 3 years
So, by putting values we have:
Future Value = $10,000 * (1 + 10%)^3 = $13,310
