Christopher invests​ $400 today at a​ 4% rate of return which is compounded annually. What is the future value of this investment after four​ years?

Respuesta :

Answer:

$468

Explanation:

The computation of the future value of this investment after four​ years is shown below:

We know that

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

                       = 400 × (1 + 0.04)^4

                       = 400 × 1.16985856

                       = $468

We simply applied the above formula so that future value could come.