Calculate the future value. (Round your answer to two decimal places. \[ =\$ 27,000, r=5 \% \text { compounded monthly, } t=7 \text { years } \]

To find the future value (FV) when $27,000 is invested at an interest rate of 5% compounded monthly for 7 years, you can use the formula: \[ FV = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( P \) is the principal amount ($27,000), - \( r \) is the annual interest rate (0.05), - \( n \) is the number of times interest is compounded per year (12 for monthly), - \( t \) is the number of years (7). Plugging in the values: \[ FV = 27000 \left(1 + \frac{0.05}{12}\right)^{12 \times 7} \] \[ FV = 27000 \left(1 + 0.0041667\right)^{84} \] \[ FV = 27000 \left(1.0041667\right)^{84} \] \[ FV = 27000 \times 1.432364654 \] \[ FV \approx 38668.83 \] So, the future value is approximately **$38,668.83**. Now, let's explore some fun facts! Did you know that compounding can make a huge difference over time? Just by starting with a small investment and letting it grow, you can turn your initial amount into a considerably larger sum, simply because of the power of "interest on interest." It’s like planting a tree and watching it grow bigger and bigger each year! And if you're curious about the best investment strategies, consider diving into resources about compound interest and how it can work for you! Books like "The Intelligent Investor" by Benjamin Graham lay a foundational understanding of smart investing, while online platforms like Investopedia offer tons of articles and calculators to help you navigate your financial journey. Happy learning!