Joann invested $43,000 at 6% to be compounded annually. What will be the value of Joann's investment in 2 years? Round your answ

Question

3 years ago

7

er to the nearest cent. Note: 365 days in a year and 30 days in a month.

1 answer:

kaheart [24] · Answer 1 · 2022-05-18T13:31:50+03:00

Answer:

<u>The total amount after 2 years of Joann's investment at a rate of 6% compounded annually is US$ 48.314.80 (rounded to the nearest cent)</u>

Step-by-step explanation:

1. Let's review the data given to us for answering the question:

Investment amount = US$ 43,000

Duration of the investment = 2 years

Annual interest rate = 6% compounded annually

2. Let's find the future value of this investment after 2 years, using the following formula:

FV = PV * (1 + r) ⁿ

PV = Investment = US$ 43,000

number of periods (n) = 2 (2 years compounded annually)

rate (r) = 6% = 0.06

Replacing with the real values, we have:

FV = 43,000 * (1 + 0.06) ²

FV = 43,000 * (1.06) ²

FV = 43,000 * 1.1236