Question

$350 at 2.3% for 10years

Answer 1

The future value of a $350 investment at an annual interest rate of 2.3% for 10 years (compounded annually) is approximately $441.60.

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

`\[ FV = P * \left(1 + (r)/(n)\right)^(nt) \]`

where:

- FV is the future value,

- P is the principal amount (initial investment),

- r is the annual interest rate (in decimal form),

- n is the number of times interest is compounded per year,

- t is the number of years.

In this case:

- P = $350,

- r = 0.023 (2.3% as a decimal),

- n is not specified, so let's assume it's compounded annually (n = 1),

- t = 10 years.

Substitute these values into the formula:

`\[ FV = 350 * \left(1 + (0.023)/(1)\right)^(1 * 10) \]`

`\[ FV = 350 * (1.023)^(10) \]`

Calculating this gives the future value:

`\[ FV \approx 350 * 1.2617 \]`

`\[ FV \approx 441.595 \]`

So, the future value of a $350 investment at an annual interest rate of 2.3% for 10 years (compounded annually) is approximately $441.60.

The probable question may be:

Calculate the future value of a $350 investment at an annual interest rate of 2.3% for 10 years?