Asked by B.L.
19. The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months?
A. $422.10
B. $432.60
C. $424.11
D. $426
A. $422.10
B. $432.60
C. $424.11
D. $426
Answers
Answered by
Henry
V = Vo(1+r)^n.
Vo = $420.
r = 0.03/12 = 0.0025/mo.
n = 1Comp/mo. * 2mo. = 2 compounding periods.
V = ?.
Vo = $420.
r = 0.03/12 = 0.0025/mo.
n = 1Comp/mo. * 2mo. = 2 compounding periods.
V = ?.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.