Investment Growth
If €600 is invested today at an annual interest rate of 7% per year, what is its future worth at the end of 35 years?
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.
$$$F=€600(1+0.07)^{35}=€600(1.07)^{35}=€6,406$$$
€6,406