Question

Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding

Answer 1

Answer:

FV= $240.08

Explanation:

Giving the following information:

Sue now has $125.

Number of periods= 8 years

Interest rate= 8.5% with annual compounding

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

FV= PV*(1+i)^n

FV= 125*(1.085)^8

FV= $240.08