Suppose you deposit $125 into a bank today earning 2.5% interest. How much money would you have after one year

the money after one year is $128.125

Explanation:

The computation of the money after one year is shown below;

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $125 × ( 1 + 2.5% ) ^1

= $125 × 1.025

= $128.125

Hence, the money after one year is $128.125

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