Question

Assume an investment of $100 earns an APR of 7% compounded annually. Calculate the balance after 170 years. (Round your answer tothe nearest cent.)

Answer 1

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

n= number of compounded periods per unit t = 1 ( anually)

r = interest rate = 7% = 0.07 ( decimal form)

t= number of years = 170

P= principal investment = 100

A = future value

Replacing:

A = 100 ( 1 + 0.07/ 1 )^1*170

A= 100 ( 1 +0.07) ^ 170

A = 9,891,045.66