Question

If $500 is invested at an annual interest rate of 8% per year, its future worth at the end of 30 years will be most nearly:

Answer 1

Answer:

$FV=5031.32844$

FV≅$5031

Future worth at the end of 30 years will be most nearly $5031.

Explanation:

In order to find the Future value after 30 years, we are going to use the following formula:

$FV=PV*(1+i)^n$

where:

FV is the future value (End of 30 years)

PV is the present value ($500)

i is the interest rate=8%=0.08

n is the number of years (30 years)

Now,

$FV=PV*(1+i)^n$

$FV=500*(1+0.08)^{30}$

$FV=5031.32844$

FV≅$5031

Future worth at the end of 30 years will be most nearly $5031.