Question

Find the future value.$4603 invested for 2 years at 3% compounded annually.

Answer 1

As given by the question

There are given that the 4603 invested for 2 years at 3% compounded.

Now,

From the formula of future value:

`FV=X*(1+i)^n`

Where X is an original investment, i is the interest rate and n is numbers of periods.

Then,

`\begin{gathered} FV=X*(1+i)^n \\ FV=4603*(1+0.03)^2 \\ FV=4603*1.0609 \\ FV=4883.3227 \end{gathered}`

Hence, the future value is $4883.3227.