Question

If you were to open an account that will pay you 3.5% interest with a deposit of $150 so find the following ending amount for each period at the end of 2 years

Answer 1

FV= $160.68

Explanation:

Giving the following information:

Initial investment= $150

Interest rate= 3.5% compounded annually

Number of periods= 2

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

FV= PV*(1+i)^n

PV= present value

i= interest rate

n= number of periods

FV= 150*(1.035^2)

FV= $160.68