Question

Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?a. $1,122.54b. $1,181.62c. $1,240.70d. $1,302.74e. $1,367.88

Answer 1

FV= $1,181.62

Step-by-step explanation:

Giving the following information:

Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1+0.035)^25

FV= $1,181.62