To calculate the future value of an investment with compound interest, you can use the formula:
FV = PV * (1 + r)^n
Where:
FV = Future Value
PV = Present Value (initial investment)
r = annual interest rate
n = number of years
In this case, the initial investment is $4000, the annual interest rate is 3.5%, and the number of years is 8. Plug these values into the formula:
FV = $4000 * (1 + 0.035)^8
FV = $4000 * (1.035)^8
FV = $4000 * 1.321971
FV = $5287.88
Therefore, you will have approximately $5287.88 in 8 years if you invest $4000 at 3.5% compounded annually.
How much money will you have in 8 years if you invest $4000 at 3.5% compounded annually?
1 answer