Question

You put $2,500 into an investment at 4.65% for six years. What will the balance be

at the end of six years?

Answer 1

The formula for calculating the future value of an investment with interest compounded annually is:

FV = PV (1 + r)^t

where:

FV = future value

PV = present value (initial investment)

r = interest rate (expressed as a decimal)

t = number of years

Substituting the given values into the formula, we get:

FV = 2500 (1 + 0.0465)^6

Calculating this out we get

FV = 2500 * 1.0465^6

FV = 2500 * 1.293498

FV = 3233.744

So the balance at the end of six years would be $3,233.74

Explanation: