Question

If you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings?

Answer 1

Answer:

$400 as in 4 years you will save 40 % on Simple interest

Answer 2

Answer:

Final answer is 1461.1

Step-by-step explanation:

To get the final value need to find the value on each year the investor will get for the next 4 years.

Given: Amount to be invested is 1000 for 4 year on the rate of 10%

Find: Total amount after the 4 years

Calculation:

Put the values in the fomula

$Future value=present value X(1+i)^{4} \\=1000(1+0.1)^{4}\\=1000X1.464100000000\\=1461.1$

So the final answer is 1461.1

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