Suppose that you deposited $461.26 in a bank account last year that earns 7.04%. How much...

Question

Question

Suppose that you deposited $461.26 in a bank account last year that earns 7.04%. How much will you have $ on deposit in anoth

Answer 1

Answer #1

Information provided:

Present value= $461.26

Time= 5 years

Interest rate= 7.04%

The question is solved by calculating the future value.

The question is calculated by entering the below in a financial calculator:

PV= -461.26

N= 5

I/Y= 7.04

Press the CPT key and FV to compute the future value.

The value obtained is 648.15.

Therefore, I will have $648.15 on deposit in another five years.

In case of any query, kindly comment on the solution.

Answer 2

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