Question

12 years ago, Chris purchased an investment for $57,000. The investment earned 9 percent interest each year. Using the equation method, what is the worth of the investment today

Answer 1

$160,321.89

Step-by-step explanation:

The worth of the investment today can be calculated with the following formula

FV = P(1 + r )^n

Where: FV = Future Value of investment

P = Initial investment

r = Rate of interest

r = Number of years

P = $57,000

r = 9 percent = 9%

r = 12 years

FV = 57,000(1 + 9% )^12

FV = 57,000(1 + 0.09 )^12

FV = 57,000(1.09 )^12

FV = 57,000(2.812664782)

FV = $160,321.8926

FV = $160,321.89