Question

If $3000 is invested at 5% interest, compounded annually, then after n years the investment is worth an

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $3,400

Interest rate (i)= 5% = 0.05

Number of years= ?

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

For example:

n= 10 years

FV= 3,400*(1.05^10)

FV= $5,538.24

n= 8 years

FV= 3,400*(1.05^8)

FV= 5,023.35