Question

You have $1200 and a few different investment choices for the money. Below are a series of descriptions of investments, and equations that match with some of the descriptions. Please drag the equations to match the descriptions.

Answer 1

Compound interest equation:

• 
  `A = P(1 + r/n)^(nt)`,

• Where A - future value, P - invested amount, r- rate, n- number of compounds per year, t- years.

Find equations for each case below.

1) P = 1200, r = 0.09, n = 1, t = 15

• Equation:
• A = 1200(1 + 0.09)¹⁵ = 1200(1.09)¹⁵

2) P = 1200, r = 0.12, n = 4, t = 15

• Equation:
• A = 1200(1 + 0.12/4)⁴*¹⁵ = 1200(1.03)⁶⁰

3) P = 1200, r = 0.12, n = 12, t = 15

• Equation:
• A = 1200(1 + 0.12/12)¹²*¹⁵ = 1200(1.01)¹⁸⁰

4) P = 1200, r = 0.15, n = 2, t = 9

• Equation:
• A = 1200(1 + 0.15/2)²*⁹ = 1200(1.075)¹⁸