Answer:
After 1 year $46,665
Vf = Vi ( 1 + r/m) ^ tm
Step-by-step explanation:
Vf = Final Value
Vi = Initial Value ($45,000)
r = Interest Rate (3.7%, put in decimal form so .037)
m = Compound Rate (amount of times it increases every year, for this it would be 1)
t = Amount of years you are forecasting
45000 * (1 + .037)²
45000 * (1.037)²
45000 * 1.075369
$48,391.605 in 2 years
