Answer to Question #220767 in Financial Math for nicky

Question

Determine the future value of a $5,000 compound-interest Canada Savings Bond at 8.5%/a, compounded annually after each amount of time.

4 years

Answer 1

Given amount =$5,000

Compound Interest Rate (R) =8.5%

Time (n) =4years

So Future Value ;

$A=P(1 +\frac {R} {100}) ^n$

$A=5,000(1 +\frac {8.5} {100}) ^4$

$A=5000+(1.385)^4$

$A=\$6,929.29$

Therefore the required Future Value is $6,929.29