SOLUTION: Nico wants to invest his savings of ₱20,000 today in order to gain more money in the future. Assuming that he invests his money in a time deposit that earns 5% per annum, how muc
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-> SOLUTION: Nico wants to invest his savings of ₱20,000 today in order to gain more money in the future. Assuming that he invests his money in a time deposit that earns 5% per annum, how muc
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Question 1160257: Nico wants to invest his savings of ₱20,000 today in order to gain more money in the future. Assuming that he invests his money in a time deposit that earns 5% per annum, how much money will he have after 5 years?
You can put this solution on YOUR website! formula to use is f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.
in this problem, the formula becomes f = 20,000 * (1 + .05) ^ 5
solve for f to get:
f = 25,525.63125.
