Question

Pasha invests $50. 000 in a savings account for 4 years. He gets 1. 3% per year compound interest. Work out how much money Pasha will have in his savings account at the end of 4 years

Answer 1

To calculate the future value of an investment with compound interest, we can use the formula: A = P(1+r)^n. Therefore, at the end of 4 years, Pasha will have approximately $51,961.19 in his savings account.

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

A = P(1+r)^n

Where:

• A represents the future value of the investment
• P is the initial amount invested or principal
• r is the annual interest rate in decimal form
• n is the number of years the money is invested for

In this case, Pasha invests $50,000 with an annual interest rate of 1.3% for 4 years. Plugging these values into the formula:

A = 50000(1+0.013)^4

A = 50000(1.013)^4

A ≈ 51961.19