Future Value Calculation for Investment

Aisha wants to invest $1,000 in a savings account that offers an annual interest rate of 5%. She plans to keep her money in the account for 3 years. What will be the future value of Aisha's investment at the end of the 3 years?

To calculate the future value (FV) of her investment, you can use the formula:

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

where:

• $PV$ = Present Value
• $r$ = annual interest rate
• $n$ = number of years