Question

Winston deposited $3,294 in a bank account with an annual interest rate of 2.6%. How much interest was earned in 5

years? Round your answer to two decimal places.

Answer 1

Answer:

FV= $3,725.07

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $3,294

Number of periods (n)= 5 years

Interest rate (i)= 2.6% = 0.026

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

FV= PV*(1+i)^n

FV= 3,294*(1.026^5)

FV= $3,725.07