Question

Juanita deposited $12,000 in a savings bond that earns 6 % interest. How much money will she have when the bond matures in 25 years?

Answer 1

FV= $51,502.45

Explanation:

Giving the following information:

Initial deposit (PV) = $12,000

Interest rate (i) = 6% = 0.06

Number of periods (n) = 25 years

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

FV= PV*(1+i)^n

FV= 12,000*(1.06^25)

FV= $51,502.45