Kendra signed a contract to play professional soccer she got 100,000 signing bonuses and decided to invest the bonus in a money market among that pays 17% compounded yearly she plan to use the signing bonus when she retires in 20 years how much Will her investments be worth in 20 years round the answer to two decimal places
To determine how much Kendra's investments will be worth in 20 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (in this case, the $100,000 bonus)
r = the annual interest rate (17% or 0.17)
n = the number of times that interest is compounded per year (since the problem states compounded yearly, n = 1)
t = the number of years (20 years)
Plugging in the values into the formula:
A = 100,000(1 + 0.17/1)^(1*20)
Simplifying:
A = 100,000(1 + 0.17)^20
Calculating (1 + 0.17)^20:
A = 100,000(1.17)^20
A ≈ $1,032,490.41
Therefore, Kendra's investments will be worth approximately $1,032,490.41 in 20 years.
Kendra signed a contract to play professional soccer she got 100,000 signing bonuses and decided to invest the bonus in a money market among that pays 15% compounded yearly she plan to use the signing bonus when she retires in 20 years how much Will her investments be worth in 20 years round the answer to two decimal places
To determine how much Kendra's investments will be worth in 20 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (in this case, the $100,000 bonus)
r = the annual interest rate (15% or 0.15)
n = the number of times that interest is compounded per year (since the problem states compounded yearly, n = 1)
t = the number of years (20 years)
Plugging in the values into the formula:
A = 100,000(1 + 0.15/1)^(1*20)
Simplifying:
A = 100,000(1 + 0.15)^20
Calculating (1 + 0.15)^20:
A = 100,000(1.15)^20
A ≈ $732,814.28
Therefore, Kendra's investments will be worth approximately $732,814.28 in 20 years.