Question

The value V, of a 300000 investment that earns 2% annual interest is given by V=f(t) where t is in years

Answer 1

Answer:

$318,362.40

Step-by-step explanation:

The equation that describes the future value of investments with interests compounded annually is:

$V = P*(1+r)^t$

Where P is the initial investment (300,000), r is the interest rate (2%) and t is the time of investment, in years (3):

$V = 300,000*(1+0.02)^3\\V=\ 318,362.40$

The investment is worth $318,362.40 in 3 years.