Answer:
$422.10
Step-by-step explanation:
According to the scenario, computation of the given data are as follows,
Present value (PV) = $420
Rate of interest( compounded monthly) = 3% annually
so, rate of interest per month (r) = 3 ÷ 12 = 0.25% per month
Time period (n) = 2 months
so, by putting the value in excel FV formula, we get.
Attachment is attached below.
Future value in 2 months = $422.10
