what would be the future value of 280,000 based on an annual interest rate at 6 percent?
To calculate the future value of an investment, you can use the formula:
Future Value = Present Value × (1 + Interest Rate)^Time
In this case, the present value is $280,000 and the annual interest rate is 6% (or 0.06 as a decimal). To find the future value, we need to know the time period for which the interest is compounded. Assuming we are considering a one-year time period, the calculation would be as follows:
Future Value = $280,000 × (1 + 0.06)^1
Simplifying this equation:
Future Value = $280,000 × 1.06
Now we can calculate:
Future Value = $296,800
Therefore, the future value of $280,000 with a 6% annual interest rate after one year would be $296,800.