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2.1.9 Question Help An initial investment amount P, an annual interest rater, and a time t are given. Find the future value of the investment when interest is compounded (a) annually. (b) monthly, (c) daily, and (d) continuously. Then find (e) the doubling time T for the given interest rate. P = $2500, r=3.95%, t = 8 yr a) The future value of the investment when interest is compounded annually is $ (Type an integer or a decimal. Round to the nearest cent as needed.)

219 Question Help An initial investment amount P an annual interest rater and a time t are given Find the future value of the investment when interest is compou class=
219 Question Help An initial investment amount P an annual interest rater and a time t are given Find the future value of the investment when interest is compou class=

Respuesta :

Answer:

(a) $3408.29

Explanation:

The future value of the investment can be calculated as:

[tex]A=P(1+r)^t[/tex]

Where A is the future value, P is the initial investment, r is the interest rate and t is the period of time.

So, replacing P by 2500, r = 0.0395 and t by 8, we get:

[tex]\begin{gathered} A=2500(1+0.0395)^8 \\ A=2500(1.3633) \\ A=3408.29 \end{gathered}[/tex]

Therefore, the future value of the investment is $3408.29

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