Question

You deposit $825 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 25 years

Answer 1

the future value is $3,540.79

Step-by-step explanation:

The computation of the amount after at the end of 25 years is shown below:

Amount = Principal (1 + rate of interest)^number of compounding period

= $825 (1 + 0.06)^25

= $825 (4.2919)

= $3,540.79

hence, the future value is $3,540.79

We simply applied the above formula so that the correct value could come

And, the same is to be considered