Question

if I deposit $4,000 in a savings acct with a 4% compounding interest how much will I have using FV as the formula?

Answer 1

It depends on how long you invest the money. If t = the time in years you invest the money,
\[FV(t) = 4000\times1.04^{t}\]

Answer 2

ooops 5 yrs

Answer 3

the fv I have to use is 5.416

Answer 4

I don't understand what the 5.416 represents
4000 invested for 5 years at 4% interest gives us
4000 x 1.04^5 = $4866.61

Answer 5

the table I have shows fv 4% period 5yrs when the 2 meet it shows 5.416

Answer 6

maybe 4000 x 1.04^5 = $4866.61 if I put the 5416 will come up with the answer let me check that thanks

Answer 7

that didn't work out :)

Answer 8

professor trying to confuse me I guess

Answer 9

knew I was getting to old for this crap

Answer 10

ohh i know! you're table is for annuties. it assumes you invest the same amount annually for 5 year. I just verified it on my calculator. 5.416 dollars is how much you would have if you invested 1 dollar at the end of every year for 5 years

Answer 11

Don't use that table if you just want to invest a lump sum and let it sit and grow for 5 years

Answer 12

ok think I understand better now
thanks