Question

An initial investment amount P, an annual interest rate r, and a time t are given. Find the future value of the investment when interest is compounded (a) annually, (b) monthly, (c) daily, and (d) continuously. Then find (e) the doubling time T for the given interest rate. P=$14,000,r=4.3%,t=15 months

a) The future value of the investment when interest is compounded annually is

Answer 1

The future value of the investment when interest is compounded annually is approximately $20,672.05.

Step-by-step explanation:

To find the future value of the investment when interest is compounded annually, we can use the formula:

Future Value = Principal x (1 + interest rate)time

Substituting the given values, we have:
Future Value = $14,000 x (1 + 0.043)15

Calculating this, the future value of the investment when interest is compounded annually is approximately $20,672.05.