question archive Question 7 (3 points) Nour requires $4700 to buy a new machine for her cupcake shop
Question 7 (3 points) Nour requires $4700 to buy a new machine for her cupcake shop
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Question 7 (3 points) Nour requires $4700 to buy a new machine for her cupcake shop. Today, Nour's savings are equal to $4000. A friend suggested depositing the savings in the Bank, so Nour might earn enough maturity value to buy the machine! If Nour deposited her savings in the bank today at 7.00%. How much will Nour have in her savings account at the end of 10 month? Answers should be rounded to 2 digits after the decimal point. Your Answer: Answer D Add attachments to support your work
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Here formula of Future value can be used
Here r = 7%/12 = 0.5833%
n = no of months = 10 month
Here PV = 4000$
FV = PV(1+r)^n
= 4000(1+0.5833%)^10
= 4000(1+0.005833)^10
= 4000(1.005833)^10
= 4000 x 1.0598851
= 4239.54 $
