153k views
2 votes
Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how much money will he have in the account one year later?

1 Answer

4 votes

Answer:

The Future value at year time is $4,260

Step-by-step explanation:

The future value at the end of the year one can be found by using the compounding formula which is as under:

Future Value = Present Value * (1 +r)^n

Future Value = $4,000 * (1.065)^ 1 = $4,260

User Jobi Joy
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories