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Finance

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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.

  • Finance - ,

    Pt = Po(1+r)^n.

    r = 3%/100% = 0.03 = APR expressed as a decimal.

    n = 1comp/yr * 1yr = 1 = # of compound-
    ing period.

    Pt = 7000(1.03)^1 =

    Pt = 7000(1.03)^2 =

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