Question

the expression 1000(1.1)^t represents the value of a $1000 investment that earns 10% interest per year, compounded annually for 2 years. What is the value of a $1000 investment at the end of each year ?

Answer 1

Answer:

Year 1: $1,100

Year 2: $ 1,210

Step-by-step explanation:

The given expresion is:

$1000(1.1)^{t}$

This represents the value of a $1000 investment that earns 10% interest per year, compounded annually for 2 years.

To find the value of a $1000 investment at the end of the first year , we substitute t=1.

$1000(1.1)^{1} = 1100 \: dollars$

To find the value of a $1000 investment at the end of the second year , we substitute t=2.

$1000( {1.1)}^{2} = 1210 \: dollars$