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Evan invested $800 in an account that pays 3.25% interest compounded annually.
Assuming no deposits or withdrawals are made, find how much money Evan would
have in the account 12 years after his initial investment. Round to the nearest tenth
(if necessary).

Respuesta :

MrRoyal

Answer:

Evans would have $852.8

Step-by-step explanation:

Given

[tex]PV = \$800[/tex]

[tex]r = 3.25\%[/tex]

[tex]t = 2[/tex]

[tex]n = 1[/tex] --- annually'

Required

The future value

This is calculated using:

[tex]FV = PV*(1 + \frac{r}{n})^{nt[/tex]

So, we have:

[tex]FV = 800 * (1 + 3.25\%/1)^{2*1}[/tex]

[tex]FV = 800 * (1 + 3.25\%)^{2}[/tex]

[tex]FV = 800 * (1 + 0.0325)^{2}[/tex]

[tex]FV = 800 * (1 .0325)^2[/tex]

[tex]FV = 852.845[/tex]

[tex]FV = 852.8[/tex]

FV =

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