Question

The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months?      A. $422.10 B. $432.60 C. $424.11

Answer 1

$420 first month

add 3%

$420+3%

3% of $420 is 12.6

$420+12.6=$432.60

$432.60 answer