If you invest $1,000 at a 6% annual interest rate, how much will it be worth in 5 years with annual compounding?a.$1,338.22b.$1,060c.$1,300d.$1,500
Question
Solution 1
The formula for calculating the future value of an investment with annual compounding is:
FV = P * (1 + r/n)^(nt)
Where: FV = Future Value P = Principal amount (the initial amount of money) r = Annual interest rate (in decimal) n = Number of times that interest is compounded per year t Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem. Kno
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