SOLUTION: Future Value. What is the future value of a. $550 invested for 5 years at 14 percent compounded annually? b. $650 invested for 15 years at 14 percent compounded annually? I a

Question 861337: Future Value. What is the future value of
a. $550 invested for 5 years at 14 percent compounded annually?
b. $650 invested for 15 years at 14 percent compounded annually?
I am completely new to finance and would really appreciate a step-by-step breakdown as to try and get a better understanding of how to solve problems such as this.
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
The formula to use is A = P(1+r/n)^nt
a) P = 550, t = 5 years, r = .14, and n = 1
A = 550(1 + .14/1)^(1*5) = $1058.98
b) P = 650, t=15, r = .14, n = 1
A = 650(1 + .14/1)^(1*15)= $4639.66

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