You wish to make a substantial down payment on a lake cottage and you currently have...
You wish to make a substantial down payment on a lake cottage and you currently have $15,725 invested at an annual rate of 2.50%. How much money will be in the account in 3.5 years if it continues to earn at its present rate?
Homework Answers
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=$15725*(1.025)^3.5
=$15725*1.090268661
=$17144.47(Approx).
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