Answer:
[tex]FV=5031.32844[/tex]
FV≅$5031
Future worth at the end of 30 years will be most nearly $5031.
Explanation:
In order to find the Future value after 30 years, we are going to use the following formula:
[tex]FV=PV*(1+i)^n[/tex]
where:
FV is the future value (End of 30 years)
PV is the present value ($500)
i is the interest rate=8%=0.08
n is the number of years (30 years)
Now,
[tex]FV=PV*(1+i)^n[/tex]
[tex]FV=500*(1+0.08)^{30}[/tex]
[tex]FV=5031.32844[/tex]
FV≅$5031
Future worth at the end of 30 years will be most nearly $5031.
