Question

You place $230.00 into an investment that has an annually compounding rate of 2.5%. How much money is in the investment after 3 years?

Answer 1

FV= $247.69

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $230

Number of periods (n)= 3 years

Interest rate (i)= 2.5% = 0.025

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

FV= PV*(1+i)^n

FV= 230*(1.025^3)

FV= $247.69