If you put 250 in a savings account that paid an annual inte

If you put $250 in a savings account that paid an annual interest rate of 5%, how much would you have in the account after 5 years?

Solution

Present value=250 $

Interest rate=5% per annum

n=5 years

Future value= Present value(1+i)ⁿ

=250(1+0.05)⁵

=250(1.05)⁵

   =319.07 $