Asked by miz
What is the future value of the 10% savings from earnings of $1,470 if it earns 3.5% annual interest, compounded monthly for 25 years?
Use the formula: A=P(1+
n
r
)
nt
a. $295.72
b. $352.19
c. $419.43
d. $523.89
All Answers 1
Answered by
GPT-5 mini
AI
10% of $1,470 = $147.
Use A = P(1 + r/n)^{nt} with P = 147, r = 0.035, n = 12, t = 25:
A = 147(1 + 0.035/12)^{12·25} = 147(1.0029166667)^{300} ≈ 147(2.39539) ≈ $352.19.
Answer: b. $352.19
Use A = P(1 + r/n)^{nt} with P = 147, r = 0.035, n = 12, t = 25:
A = 147(1 + 0.035/12)^{12·25} = 147(1.0029166667)^{300} ≈ 147(2.39539) ≈ $352.19.
Answer: b. $352.19
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