If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A)$2,800
B)$18,420
C)$46,050
D)$250,750

Question

Quizplus · Accepted Answer

Use the formula FV = PV (1 + i)ⁿ, where i is the interest rate and n the number of years, so that your deposit after 50 years = and $2,500 × (1.06)⁵⁰ = $46,050.

If You Left $2,500 on Deposit with a Bank Promising