Question

Asha, wants to invest $345678 today. He found an investment that provides 5% interest per year, compounded annually. The investment is locked in for 10 years and all interest is reinvested. What is the Future Value of this investment?​

Answer 1

$563073

Explanation:

1. year = $345678 * 1.05

2. year = 1. year * 1.05

...

10. year = 9. year * 1.05

10. year = $536260 * 1.05

10. year = $563073