Question

An investor deposits $50,000 in a money market accounts that pays 4%. How much money he will have at the end of 5 years. (Use the formula. Present your answer rounded to zero decimal places)

Answer 1

Investment, PV = $50000

Interest = 4%

Money at the end of 5 years = 50000 * (1+4%)^5 = $60833, if money is deposited at the beginning of the first year.

Money at the end of 5 years = 50000 * (1+4%)^4 = $58493, if money is deposited at the end of the first year.