Question

Suppose you deposit $1,379.00 into and account 5.00 years from today into an account that earns 14.00%. How much will the account be worth 18.00 years from today?

Answer Format: Currency: Round to: 2 decimal places.

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$1379*(1.14)^13

=$1379*5.492411495

which is equal to

=$7574.04(Approx).