The value, V, of an $800,000 investment that earns 5% annual interest is given by V=f(t) where t is in years. ?

Question

What is the value after 3 years? I thought it was $920,000 , but that answer is wrong. 

Answer 1

Favourite answer

The interst compunds yearly

v = 800000 * 1.05 *1.05 * 1.05

v = 800000(1.05)³

v = $926,100 <–––––

Answer 2

I got 926,200. 

Answer 3

You have the wrong formula. Work the problem longhand to better understand the formula.