Jenna deposits $1,000 in a bank at an interest rate of 6% compounded annually. What is the future value of the sum deposited after: a) two years. b) four years

What will be an ideal response?


a) The future value after two years = (1.06 )2 × 1,000 = $1,123.60.
b) The future value after four years = (1.06 )4 × 1,000 = $1,262.48.

Economics

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What will be an ideal response?

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