Question

You put $939 into an investment at 6% for 6 years. What will be the balance at the end of 6 years

Answer 1

We will use a Future Value Formula:

FV=PV(1 + i)ⁿ

$939 is our Present Value (PV)

.06 (6%) will be substitued for i (interest)

6 years will be substituated for "n" (numbers of periods)

FV = $939 (1 + .06) ^6

FV = 1331.989446 or rounded to 1331.99 balance at the end of 6 years