find the formula for calculating compound interest. If Mr. John Chrystal invests $6,000 today (Present Value) at a compound interest of 9 percent, calculate the Future Value of the investment after 30 years using the compound interest formula. In addition, calculate the Future Value of the investment 30 years from now using a 9 percent simple interest rate.
No idea what "efe" is!!
This is dumb and stupid I want the answers not a question within a question
To calculate compound interest, you can use the formula:
Future Value = Present Value * (1 + Compound Interest Rate)^(Number of Periods)
where:
- Future Value is the value of the investment after the specified number of periods
- Present Value is the initial investment amount
- Compound Interest Rate is the rate at which the investment grows
- Number of Periods is the length of time the investment is held for
In this case, Mr. John Chrystal invests $6,000 today at a compound interest rate of 9 percent for 30 years. The formula can be used as follows:
Future Value = $6,000 * (1 + 0.09)^30
Using a calculator or a spreadsheet, you can calculate the Future Value as follows:
Future Value = $6,000 * (1.09)^30
Future Value = $6,000 * 5.604789
Future Value = $33,628.73
So, the Future Value of the investment after 30 years using compound interest is approximately $33,628.73.
Now, to calculate the Future Value using simple interest, you can use the formula:
Future Value = Present Value * (1 + Simple Interest Rate * Number of Periods)
where all the terms have the same definitions as before.
In this case, the simple interest rate is also 9 percent. So,
Future Value = $6,000 * (1 + 0.09 * 30)
Again, using a calculator or a spreadsheet, you can calculate the Future Value as follows:
Future Value = $6,000 * (1 + 0.09 * 30)
Future Value = $6,000 * (1 + 2.7)
Future Value = $6,000 * 3.7
Future Value = $22,200
So, the Future Value of the investment after 30 years using simple interest is $22,200.