Question

A youth group has a yard sale to raise money for a charity. The group earns $800 but decides to put its money in the

Answer 1

Answer:

The amount of money you will receive is $927.419

Step-by-step explanation:

Consider the provided information.

A youth group has a yard sale to raise money for a charity. The group earns $800 but decides to put its money in the  bank for a while.

We need to calculate the amount of money if hot bank pays an interest rate of 3% compounded annually, and the youth group leaves the money in for 5  years.

Future value can be calculated as:

$FV=PV(1+r)^n$

Substitute PV=800, r=0.03 and n=5 in above equation.

$800(1+0.03)^5$

$800(1.03)^5=927.419$

Hence, the amount of money you will receive is $927.419