Answer:
The amount of money you will receive is $927.419
Step-by-step explanation:
Consider the provided information.
A youth group has a yard sale to raise money for a charity. The group earns $800 but decides to put its money in the bank for a while.
We need to calculate the amount of money if hot bank pays an interest rate of 3% compounded annually, and the youth group leaves the money in for 5 years.
Future value can be calculated as:
[tex]FV=PV(1+r)^n[/tex]
Substitute PV=800, r=0.03 and n=5 in above equation.
[tex]800(1+0.03)^5[/tex]
[tex]800(1.03)^5=927.419[/tex]
Hence, the amount of money you will receive is $927.419
