Problema Solution
The future value of $400 in two years that earns 5 percent.
Answer provided by our tutors
P = $400 the principle
t = 2 years
r = 0.05 or 5% rate
A = future value
A = P(1 + r)^t
A = 400(1 + 0.05)^2
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A = $441
The future value in 2 years will be $441.