On the day Harry was born,his parents put $1000 into an investment account that promises to pay a fixed interest rate of 4 percent per year.How much money will Harry have in this account when he turns 18?

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula: FV = PV * (1 + r)^n, where PV is the present value ($1000), r is the annual interest rate (0.04), and n is the number of years (18). Plugging in the values: FV = 1000 * (1 + 0.04)^18 = 1000 * 2.0258 ≈ $2,026.

On the Day Harry Was Born,his Parents Put $1000 into an Investment