To which set of numbers does the number below belong?
2 answers:
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Answer:
$132,612.50
Step-by-step explanation:
We will use the present value - future value formula. WHich is:
Where
FV is the future value (amount)
PV is the present value (amount)
r is the rate of interest (per year)
t is the number of years
<em>In the problem given, the present amount (PV) is 125,000. The rate of interest (r) is 3%, or 0.03. And the time frame is 2 years, or t = 2.</em>
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Plugging these info in the equation, we can get the future value as shown:
This is the future vallue of $125,000 3% in 2 years.