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Sagot :
The future value of the mutual fund after 15 years is equal to $1,256.55.
Given the following data:
- Principal = $5,000
- Interest = 3.5% = 0.035
- Time = 15 years
To find the future value of the mutual fund after 15 years:
Mathematically, compound interest is given by the formula:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
- A is the future value.
- P is the principal or starting amount.
- r is annual interest rate.
- n is the number of times the interest is compounded in a year.
- t is the number of years for the compound interest.
Substituting the given parameters into the formula, we have;
[tex]A = 750(1 + 0.035)^{15}\\\\A = 750(1.035)^{15}\\\\A = 750(1.6754)[/tex]
Future value, A = $1,256.55
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