Moe puts $1500 in a bank certificate that pays an annual rate of 4.5% compounded annually. No withdrawals or deposits are made.

Question

2 years ago

13

How much will the certificate be worth (to the nearest dollar) at the end of 7 years?

1 answer:

SpyIntel [72] · Answer 1 · 2022-07-19T11:29:43+03:00

Answer:

FV= $2,041.29

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $1,500

Number of periods (n)= 7 years

Interest rate (i)= 4.5% = 0.045

<u>To calculate the future value, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 1,500*(1.045^7)

FV= $2,041.29