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igomit [66]
3 years ago
5

Geraldine invests $2,500 in a retirement account with a fixed annual interest rate of 9.5% compounded

Mathematics
1 answer:
Artemon [7]3 years ago
6 0

Answer:

FV= $10,342.64

Step-by-step explanation:

Giving the following information:

Initial Investment (PV)= $2,500

Interest rate (i)= 0.095/12= 0.00792

Number of periods (n)= 15*12= 180

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

FV= PV*(1 + i)^n

FV= 2,500*(1.00792^180)

FV= $10,342.64

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