Anonymous
Anonymous asked in Education & ReferenceHomework Help · 2 months ago

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

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

3 Answers

Relevance
  • 2 months ago
    Favourite answer

    The interst compunds yearly

    v = 800000 * 1.05 *1.05 * 1.05

    v = 800000(1.05)³

    v = $926,100 <–––––

  • 2 months ago

    I got 926,200. 

  • ?
    Lv 7
    2 months ago

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

Still have questions? Get answers by asking now.