Question

If Sarah invests $1,000 today, what will it be worth in 40 years if she can earn 12% interest per year

Answer 1

Answer:

$93,050.97

Explanation:

P = $1,000

N = 40 years

I = 12% annually

Future value = P*(1+i)^n

Future value = $1,000*(1+0.12)^40

Future value = $1,000*(1.12)^40

Future value = $1,000*93.050970

Future value = $93,050.97