## 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**

**Hint**

The question is asking for the future worth,
$$F$$
, given the present value/worth,
$$P$$
.

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__**Hint 2**

**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