Question

You deposit $150 in an investment account that earns 6.7% annual interest compounded annually.

What is the balance of the account after 5 years?

Answer 1

Explanation:

FV = PV ( 1 + i)^n FV = future value PV = present value ( 150)

i = decimal interest per period (.067)

n = periods = 5

FV = 150 ( 1 + .067)^5 = $ 207.45