## Interest

An online savings account has a 2.4% interest rate per year. If you put in an initial investment of $5,000, how much money would be in the account 7 years from now? Hint The question is asking for the future worth, $$F$$ , given the present value/worth, $$P$$ . Hint 2 Single Payment Compound Amount: $$F=P(1+i)^n$$$
where $$i$$ is the interest rate per interest period, and $$n$$ is the number of compounding periods.
The question is asking for the future worth, $$F$$ , given the present value/worth (initial principal balance), $$P$$ . Single Payment Compound Amount:
$$F=P(1+i)^n$$$where $$i$$ is the interest rate per interest period, and $$n$$ is the number of compounding periods. $$F=\5,000(1+.024)^{7}=\5,000(1.024)^{7}=\5,903$$$
~\$5,900