Posted by audrey on .
Find the future value one year from now of a $7,000 investment at
a 3 percent annual compound interest rate. Also calculate the future
value if the investment is made for two years.
Pt = Po(1+r)^n.
r = 3%/100% = 0.03 = APR expressed as a decimal.
n = 1comp/yr * 1yr = 1 = # of compound-
Pt = 7000(1.03)^1 =
Pt = 7000(1.03)^2 =