Question

The expression 1000(1.1)t represents the value of a $1000 investment that earns 10% interest per year, compounded annually for t years. What is the value of a $1000 investment at the end of 4 years?

Answer 1

1000(1.1)4
multiply the numbers
$4400

Answer 2

Answer: $1464.1

Explanation:

Given : The expression
`1000(1.1)^t` represents the value of a $1000 investment that earns 10% interest per year, compounded annually for t years.

To find the value of a $1000 investment at the end of 4 years, we need to put the value of t = 4 in the given expression , we get

`1000(1.1)^4=1464.1`

Hence, the value of a $1000 investment at the end of 4 years = $1464.1