Belle invests $200 at the end of each year in a savings account which pays 5% annually.How much will Belle have at the end of 5 years?
A)$1,000.
B)$1,105.13.
C)$1,077.50.
D)$1,082.37.

Question

Quizplus · Accepted Answer

To calculate the future value of Belle's investment, we can use the formula:

FV = Pmt x [(1 + r)^n - 1] / r

where FV is the future value, Pmt is the payment made each year, r is the annual interest rate, and n is the number of years.

Plugging in the values, we get:

FV = 200 x [(1 + 0.05)^5 - 1] / 0.05
FV = 200 x [1.27628] / 0.05
FV = $5,105.13

Therefore, Belle will have $1,105.13 at the end of 5 years.

The correct answer is B.

Belle Invests $200 at the End of Each Year in a Savings