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polet [3.4K]
4 years ago
8

Chris plans on saving $4,000 a year at 4 percent interest for five years. Which one of these is the correct formula for computin

g the future value at Year 5 of these savings
Business
1 answer:
Debora [2.8K]4 years ago
5 0

Answer:

FV= $21,665.29

Explanation:

Giving the following information:

Chris plans on saving $4,000 a year at 4 percent interest for five years.

To calculate the future value, you need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {4,000*[(1.04^5) - 1]} / 0.04

FV= $21,665.29

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