Question

Devon invests in an account for 10 years that pays 2.15% compound interest annually. He uses the expression P(1+r)t to find the total value. What will be the total value of the account after 10 years if he invested 4,000?

Answer 1

FV= $4,948.16

Explanation:

Giving the following information:

Number of periods (n)= 10

Interest rate (i)= 2.15% compound interest annually

Present value (PV)= 4,000

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 4,000*(1.0215^10)

FV= $4,948.16