Calculate Future Value of Investment

John has saved $1,000 today and wants to invest it in an account that earns 5% interest annually. He wants to know how much his investment will grow in 5 years if he leaves the money in the account without any withdrawals.

To find the future value of his investment, he can use the future value formula, which is:

$$ FV = PV imes (1 + r)^n $$

where:

• $$ FV $$ = future value
• $$ PV $$ = present value ($1,000)
• $$ r $$ = interest rate (5% or 0.05)
• $$ n $$ = number of years (5)