Question

6. You have $600 to put into a CD at a 7% annual interest rate. What is the value of the investment after 5 years

Answer 1

FV= $841.53

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $600

Number of periods (n)= 5 years

Interest rate (i)= 7% = 0.07

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

FV= PV*(1+i)^n

FV= 600*(1.07^5)

FV= $841.53