Thank you for visiting After several years of working Katy has saved 125 000 If she invests that 125 000 in a savings fund that adds 4 each year. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
To calculate the future value of an investment with compound interest, we can use the formula:
FV = PV * (1 + r)^n
Where:
FV is the future value of the investment
PV is the present value or initial investment amount
r is the interest rate per period
n is the number of periods
In this case, Katy has saved $125,000 and plans to invest it with an annual interest rate of 4% for 15 years. Plugging the values into the formula, we get:
FV = $125,000 * (1 + 0.04)^15
Calculating this expression, we find:
FV = $125,000 * (1.04)^15
FV ≈ $215,892.30
Therefore, after 15 years, Katy's savings account is estimated to have approximately $215,892.30, assuming the interest is compounded annually at a rate of 4%.
Learn more about compound interest here:
brainly.com/question/14564932
#SPJ11
Thank you for reading the article After several years of working Katy has saved 125 000 If she invests that 125 000 in a savings fund that adds 4 each year. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
