Question

If Josh invests $500 in a 5-year fixed interest savings bond that pays 5% per annum, how much will his entire investment be worth at the end of the term?

Answer 1

Answer:

$638.14

Step-by-step explanation:

Our equation is $p*(1+x)^{t}$, with p being the starting amount, x being the interest rate, and t being the time. Plugging our variables in, we get

$500*(1+0.05)^{5}$ = around 638.14