If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be?

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula for compound interest: $FV = P(1 + r)^n$, where $FV$ is the future value, $P$ is the principal amount ($20,000), $r$ is the annual interest rate (10% or 0.10), and $n$ is the number of years (3). Plugging in the values, we get $FV = 20000(1 + 0.10)^3 = 20000(1.331) = 26,620$.

If Jacques Invests $20,000 at 10% Interest for 3 Years