Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. (^PV^of^$1, ^FV^of^$1, ^PVA^of^$1, and ^FVA^of^$1) (Use appropriate factor(s) from the tables provided.)

Question

Quizplus · Accepted Answer

The future value of $28,225 compounded annually at 10% for five years is less than $50,000. The calculation is $28,225 * (1.10)^5 = $45,454.57, which is not equal to $50,000.

Sandra Has a Savings Account That Has Accumulated to $50,000