Question

The relative growth rate for a certain type of mutual fund is 5.1% per year. An account is opened with a balance of $35,000. How much is the mutual fund worth in 5 years? In your final answer, include all of your calculations.

Answer 1

Answer:

The mutual fund would be worth $ 44,669.855 ( approx )

Step-by-step explanation:

∵ Future value of an investment,

$A=P(1+r)^t$

Where,

P = invested amount,

r = rate per period,

t = number of periods,

Here,

P = $ 35,000

r = 5.1% = 0.05,

t = 5 years,

Hence, the future value would be,

$A=35000(1+0.05)^{5}$

$=35000(1.05)^5$

$=44669.8546875$

$\approx \ 44669.855$

Answer 2

36,785 dollars            
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