Question

1. You decide to invest $100,000 in a program that is guarabteed to grow by 2.5% for each of the next 5 years. At the end of the 5 years, how much is your investment worth

Answer 1

Answer:

$113,140.821

Step-by-step explanation:

The growth of an investment is given by $P(1+r)^{n}$ where P is the principal, r is the interest rate, and n is the number of periods. So

$Future value = 100,000 ( 1+0.025)^{5}$

Future value=$113,140.821 as the amount after 5 years.