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You worked hard over the holiday break and earned an extra $1,500. You want to deposit that amount into your savings account. This savings account will earn 3.0% interest annually and no other deposits will be made. What is the future value of your deposit after 5 years?

Respuesta :

adioabiola

Answer:

$1,738.95

Step-by-step explanation:

FV = PV(1+r/n)^nt

FV = future value

PV = present value = $1,500

r = interest rate = 3.0% = 0.03

n = Number of periods = 1

t = 5 years

FV = PV(1+r/n)^nt

= 1,500(1 + 0.03/1)^1*5

= 1,500(1 + 0.03)^5

= 1500(1.03)^5

= 1,500(1.1593)

= 1,738.95

FV = $1,738.95

The future value of your deposit after 5 years is $1,738.95

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