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kolezko [41]
1 year ago
6

Question 1 (Essay Worth 10 points)

Mathematics
1 answer:
zysi [14]1 year ago
4 0

$394.51 is future value of money after 2 years.

What future value means?

  • A current asset's future value (FV), which is based on an estimated rate of growth, is its value at a later time.
  • Investors and financial planners use the future value to project how much an investment made now will be worth in the future.

The method that results in more money after 2 years is Peggy's investment.

Which method results in more money in 2 years?

The formula for calculating the future value of an investment:

FV = P (1 + r)^nm

FV = Future value

P = Present value

R = interest rate

m = number of compounding

N = number of years

Future value of Larry's investment: $350 x [1 + (0.04/4)]^(4 x 2) = $379

Future value of Peggy's investment: $350 x [1 + (0.06/12)]^(12 x 2) = $394.51

Learn more about future value

brainly.com/question/14860893

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