Question

us suppose that you open a savings account at the campus credit union. Into this savings account, you place $100 in savings. The interest rate is 5 percent. The future value of this account in two years is

Answer 1

the future value in two years is $110.25

Step-by-step explanation:

The computation of the future value in two years is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $100 × (1 + .05)^2

= $100 × (1.1025)

= $110.25

Hence, the future value in two years is $110.25

The same should be considered and relevant