54.5k views
1 vote
a couple invests $9,351.00 today in a money market fund that pays 7.00% per year. what is the value of this account in exactly one year?

User ARH
by
7.5k points

1 Answer

5 votes
To calculate the value of the investment in one year, we need to find the interest earned on the initial amount. We can use the formula:

A = P * (1 + r)^t

Where A is the end balance, P is the initial amount, r is the interest rate as a decimal, and t is the number of years.

In this case:
A = 9,351 * (1 + 0.07)^1
A = 9,351 * 1.07
A = 10,026.47

Therefore, the value of the account in exactly one year would be $10,026.47.
User Patlatus
by
6.7k points