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You deposit $2,500 into an account that earns 3% per year. How much will you have in your account in 10 years? O $3,903.05 $4
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Answer #1

Correct option - $3,359.79

In this question we will use the formula of compound interest, that is.

FV = P(1 + r) n

​where,

FV = future value = to be find

P = principal amount = $2,500

r = interest rate = 3% or 0.03

n = number of period = 10 years.

Putting all the values into the formula,

FV = 2,500(1 + 0.03) 10

FV = 2,500(1.03) 10

FV = 2,500*(1.343916)

FV =~ $ 3,359.79

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