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24 October, 18:02

Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years? a. $1,122.54b. $1,181.62c. $1,240.70d. $1,302.74e. $1,367.88

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  1. 24 October, 18:22
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    FV = $1,181.62

    Explanation:

    Giving the following information:

    Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?

    We need to use the following formula:

    FV = PV * (1+i) ^n

    FV = 500 * (1+0.035) ^25

    FV = $1,181.62
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