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?a. $2,245.08b. $2,363.24c. $2,481.41d. $2,605.48e. $2,735.75

Answer 1

FV= $2,363.24

Step-by-step explanation:

Giving the following information:

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?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 1000*(1+0.035)^25

FV= $2,363.24