Find a bank account balance if the account starts with $1000, has an annual rate of 4%, and the money left in the account for 12 years

Answer 1

Need to find the future worth if a present amount of $1000 is invested at a rate of 4% annually:

Use the formula below:

F = P ( 1+ i )ⁿ ,

where P = $1000 , i = annual interest rate = 4% = 0.04 , and n = duration in years = 12 years

F = $1000 ( 1 + 0.04) ¹² = $ 1601