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2)You deposit $1000 today in a savings account that pays 4.0% interest, compounded annually. How much will your account be worth at the end of 25 years?

Future value= Amount * (1+rate of interest )^duration
=1500*(1+4%)^25
=$3998.75 =Answer

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You deposit $1000 today in a savings account that pays 4.0% interest, compounded ...

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Sandhya Sharma, MSc
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  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
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