If you invest $1,000 at an annual interest rate of 5%compounded annually, how much will you have after 3years?a) $1,150.00b) $1,157.63c) $1,162.89d) $1,175.25

We know that compound interest formula, A=P(1+nr)nt where:A is the amount of money accumulated…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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If you invest $5,000 at an annual interest rate of 6% compounded annually, what will be the value of your investment after 5 years? a) $6,691.13 b) $6,500.00 c) $7,012.85 d) $6,802.44
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If you invest $1,000 at an annual interest rate of 5% compounded annually, how much will you have after 3 years? a) $1,150.00 b) $1,157.63 c) $1,162.89 d) $1,175.25