Question

you deposit $3,900 and an account with an annual interest of 5.4% for 10 years. what amount of money will you have at the end of 10 years?

Answer 1

The future value is given by:

`FV=PV(1+r)^t`

Where:

PV = Present value

FV = Future value

r = interest rate

t = time

So:

`\begin{gathered} FV=3900(1+0.054)^(10) \\ FV=6598.887369 \end{gathered}`

Answer:

$6598.887369