contestada

Jimmy recently graduated from college and put the $15000 gift from his grandparents in an investment that increases by %14 each year. Write the equation that models this equation.

Respuesta :

Answer:

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 15000

r = 14% = 14/100 = 0.14

n = 1 because it was compounded once in a year.

Therefore, the equation that models this situation is

A = 15000(1 + 0.14/1)^1 × t

A = 15000(1.14)^t

veronicaculs

Answer:

Final value (FV) of the investment: [tex]FV= 15,000\times1.14^t[/tex],where t are the amount of years the money were invested.

Step-by-step explanation:

  • If Jimmy uses this money to invest, and the investment return is 14% each year, this means that, at the end of the first year, Jimmy would get  [tex]17,100= 15,000\times (1+14\%)=15,000\times1.14[/tex].
  • On the second year, if he invest this 17,100 on the same investment option, he would get [tex]19,494=17,100\times1.14=15,000\times1.14\times1.14=15,000\times1.14^2[/tex].
  • The same would apply to the third year.
  • We can re-writte the calculation to know how much Jimmy would get, depending on the amount of years the money was invested as follow: [tex]FV=15,000\times1,14^t[/tex], where FV is the final value of what Jimmy would get   for investing the $15,000 "t" periods.

Otras preguntas