If $100 is invested at 6% interest per year, compounded annually, then the future value of this investment after 4 years is Solution: F = P (1 + i) n = $100 (1 + 0.06) 4 = $100 (1.06) 4 = $100 (1.2625) = $126.25Solution: Q#15: A $100 investment now in an account that pays compound interest annually will be worth $250 at a point exactly 31 years from now. What annual interest rate does this account pay? Solution: Solving the equation for i: 250 = 100 (1 + i) 31 1 + i = (250/100) 1/31 = 1.0299 yields an answer of 3%. Q#16: If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years? Solution: FV+ 4000(1.015) FV 4000(1.346855007)