Question

Susan won $2000 and invested it into an account with an annual interest rate of 3.2%. If her investment were compounded monthly, which expression best represents the value of her investment after t years

Answer 1

Answer:

FV= PV*(1+i)^t

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $2,000

Interest rate (i)= 3.2% = 0.032

Number of periods= t

To calculate the future value (FV) of the investment, we need to use the following formula:

FV= PV*(1+i)^t

For example, Susan invests for 4 years:

FV= 2,000*(1.032^4)

FV= $2,268.55