Question

1. You decide to invest $100,000 in a program that is guarabteed to grow by 2.5% for each of the next 5 years. At the end of the 5 years, how much is your investment worth

Answer 1

$113,140.821

Explanation:

The growth of an investment is given by
`P(1+r)^(n)` where P is the principal, r is the interest rate, and n is the number of periods. So

`Future value = 100,000 ( 1+0.025)^(5)`

Future value=$113,140.821 as the amount after 5 years.