Question

Your bank offers a savings account that pays 3.5% interest, compounded annually. If you invest $1,000 in the account, then how much will it be worth at the end of 25 years

Answer 1

Answer:

The account will be worth $2,363.25 at the end of 25 years.

Explanation:

Enter the following data in financial calculator

PV = - $1,000

r = 3.5 %

P/yr = 1

n = 25

PMT = $0

FV = ?

Using the Financial Calculator, the future value (FV) after 25 years will be $2,363.25.

Therefore, the account will be worth $2,363.25 at the end of 25 years.