Question

Isabella invested $1300 in an account that pays 4.5% compounded annually. Assuming no deposits or withdrawals are made , find how much money Isabella would have in the account 14 years after her initial investment . Round to the nearest tenth.

Answer 1

Answer:

FV= $2,407.53

Step-by-step explanation:

Giving the following information:

Present Value (PV)= 1,300

Interest rate (i)= 4.5% = 0.045

Number of periods (n)= 14 years

To calculate the future value (FV) of the initial investment after 14 years, we need to use the following formula:

FV= PV*(1 + i)^n

FV= 1,300*(1.045^14)

FV= $2,407.53