Use the compound interest formula to find the future value A for the following values.

Question

Use the compound interest formula to find the future value A for the following values.

P=$500

i=0.059

n=25



A=$__________

​(Round to the nearest​ cent.)

Answer 1

the underlying compound interest formula that you want to use to set this one up is

A = P(1 + r)^n

for this scenario that means taking

A = 500(1 + 0.059)^25

meaning that the future value in this scenario is $2,095.89

Answer 2

A = 500(1 + 0.059)²⁵