Question

If you deposit $9000 into a bank account that pays 0.25% per month, what the amount your account will be worth after 2 years?

Answer 1

Answer:

$9,045.11.

Explanation:

The value of the investment, fv after 2 years can be determined as fallows :

PV = - $9000

Pmt = $0

r = 0.25%

n = 2 × 12 = 24

p/yr = 12

FV = ?

Using a financial calculator, the value of the investment, fv is $9,045.11.