Question

24.) For the case shown in the following table, the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually at the rate specified equals
Single Cash Flow $27,000
Deposit Period (years) 20
Interest Rate 11%

a. $217,682.41
b. $1,733,476.40
c. $3,348.92
d. $215,009.86

Answer 1

You mean you just deposited once with 27K ?

If so

amount = 27,000 (1.11)^20
= 27,000 (8.062311536)
= 217,682.41 gee, I agree to the penny

wonderful stuff that compounding :)

Answer 2

I think so :) Thanks