Question

Write an equation that represent the value of an 8700 investment that has 9.1% interest rate compounded yearly y=a(b)^x

Answer 1

future value = $8700(1.091)^x

Explanation:

The formula for calculating future value:

FV = P (1 + r) n

FV = Future value

P = Present value = 8700

R = interest rate = 9.1%

N = number of years = x

future value = $8700(1.091)^x