Sarah invests $2,700 today in an account that pays 6 percent interest compounded annually. She wants to know the total balance i

Question

2 years ago

11

Sarah invests $2,700 today in an account that pays 6 percent interest compounded annually. She wants to know the total balance i

n her account five years from today. Identify the correct keystrokes to be used in a financial calculator to determine the total balance.

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1 answer:

nata0808 [166] · Answer 1 · 2022-09-10T06:14:50+03:00

Answer:

In any financial calculator, all Sarah has to do is to determine the value of the interest rate, the number of compounding periods, and the present value of the investment, and plug in these figures in the software.

For this case, the values are:

Interest rate: 6% compounded annually.

Number of compounding periods: 5 years.

Present value of the investment: $2,700.