Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at t

Question

4 years ago

14

he end of 25 years?a. $1,122.54b. $1,181.62c. $1,240.70d. $1,302.74e. $1,367.88

1 answer:

Maksim231197 [3] · Answer 1 · 2021-12-02T21:43:16+03:00

Answer:

FV= $1,181.62

Explanation:

Giving the following information:

Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1+0.035)^25

FV= $1,181.62