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Chapter 1

Q. 1.2

Future worth. If you invest $2500 at 10% interest compounded annually for 5 years, how much money will be in the account at the end of 5 years?


Verified Solution

P = $2500

i = 10% per year

n = 5 years

F=P (1+ i)^{n} = 2500(1+ 0.1) ^{5} =$4026