In 1986 a family member invested$ 100 each month into savings account with an interest rate of 0.25% that didn't change. In 2016 you decided you needed to use that saved up money for a big purchase so you cash the savings account out

Complete question is;

In 1986, a family member invested $100 each month into a savings account with an interest rate of 0.25% (that didn't change). In 2016, you decided you needed to use that saved up money for a big purchase, so you cash the savings account out.

How much money should be in the account using the FV formula?

FV = $107.78

Step-by-step explanation:

We are given;

Present value; PV = 100

Interest rate; r = 0.25% = 0.0025

We are told the PV was in 1986 and In 2016 you decided you needed to use that saved up money .

This is a period of 30 years.

Thus, the number of compounding periods is n = 30

Formula for FV is;

FV = PV(1 + r)ⁿ

FV = 100(1 + 0.0025)^(30)

FV = $107.78

overpriced

step-by-step explanation: