no idea. Did you plug in the numbers and see what's the result?
But I will say that starting from 2000 it takes a lot more than 5 years to get to 221 million!
Carmen is planning to invest $2000 in an account earning 3.15% interest, compounded quarterly, for 5 years. He used the following formula and variables to solve for the future value of the account after 5 years.
FV = PV(1 + i)^nt
FV = Future Value
PV = 2000
i = 3.15/4
n = 4
t = 5
He found that the future value of this account will be $221,794,618.84. Is Carmen’s solution correct?
If not, explain what he did wrong and provide the correct solution
1 answer