Question

Suppose you deposit $2,000.00 into and account 9.00 years from today into an account that earns 5.00%. How much will the account be worth 14.00 years from today?

Answer 1

The value of the account at the end of 14 years,

value at the end of the 9th year is $2000, so the value at the end of 14th year is ,

$2000(1.05)^5 = $ 2552.56.

Using the formula,

FV = PV( 1 +R)^N

Now, the value of the account 14 years