Question

What is the value of the investment in 20 years for V(t), after t years, of a $1000 investment expected to appreciate by 5% each year?
A.) $1,005.05
B.) $1,102.50
C.) $3,325,256.73
D.) $2,653.30

Answer 1

The investment will be $2653.30 after 20 years.

Step-by-step explanation:

Given,

Principal(P) = $ 1000

Time (T) = 20 years

Rate of interest(R) = 5%

To find the amount after 20 years

Formula

Amount(A) = P$(1+\frac{R}{100}) ^{T}$

Now putting the values of P, T and R we get,

A = $1000$(1+\frac{5}{100} )^{20}$

=$ 1000$(\frac{105}{100} )^{20}$

=$ 2653.297

= $ 2653.30

Hence, the investment will be $2653.30 after 20 years.