Question

Suppose you deposit $1,682.00 into and account 4.00 years from today into an account that earns 5.00%. How much will the account be worth 18.00 years from today

Answer 1

Answer:

FV= $3,330.25

Explanation:

Giving the following information:

Initial investment= $1,682.00

Number of periods= 14 years

Interest rate= 5% compounded annually

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

PV= present value

i= interest rate

n= number of years

FV= 1,682*(1.05^14)

FV= $3,330.25