Question

The value V, of a $100,000 investment that earns 3% annual interest is given by V=f(t) where t is in years. How much is the investment worth in 3 years

Answer 1

f(3)

Answer 2

75000

Answer 3

433

Answer 4

109000

Answer 5

[AI-generated answer — Explain Bot]

To calculate the value of the investment in 3 years, we can use the formula provided: V = f(t) = $100,000.

Since the investment earns a 3% annual interest, we need to calculate the interest gained over the 3-year period. The interest gained each year can be computed by multiplying the initial investment ($100,000) by the interest rate (3%) and dividing by 100:

Interest gained = ($100,000 * 3) / 100 = $3,000 per year.

To find the total value of the investment in 3 years, we sum the initial investment with the accumulated interest:

Total value = initial investment + interest gained * number of years

Total value = $100,000 + ($3,000 * 3) = $100,000 + $9,000 = $109,000.

Therefore, the investment will be worth $109,000 in 3 years.