Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Why is my answer wrong?
![Can someone help me solve this problem? I plug into the formula and get $956.5, yet it says that I am
incorrect.
If your bank pays you 1.7% interest and you deposit
$850 today, what will your balance be in 7 years?
Answer:
FV = 850 (1.017)^7
%3D
FV = 956.457322 <- WRONG ANSWER](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cc63220-3197-40f2-92b8-463454fa53bd%2Fb8ca6a20-4732-4f81-ae4e-402b36fe9a73%2Fnzygo9d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Can someone help me solve this problem? I plug into the formula and get $956.5, yet it says that I am
incorrect.
If your bank pays you 1.7% interest and you deposit
$850 today, what will your balance be in 7 years?
Answer:
FV = 850 (1.017)^7
%3D
FV = 956.457322 <- WRONG ANSWER
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