Question

Marta invested $5, 425 in the stock market and earned 8.5% interest. How much money will Marta have in her account after one year? Round your answer to the nearest cent.

Answer 1

Answer:

Future Value= $5,886.13

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $5,425

Number of periods (n)= 1 year

Interest rate (i)= 8.5% = 0.085

To calculate the future value after one year, we need to use the following formula:

FV= PV*(1+i)^n

FV= 5,425*(1.085^1)

FV= $5,886.13