Question

Shota invests $2000 in a certificate of deposit that earns 2% in interest each year

write a function that gives the total value V(t), in dollars, of the investment t years from now

Answer 1

V (t) = 2000 (1.02)^t

Explanation:

Answer 2

`V(t)=2000(1.02)^t`

Explanation:

To solve the problem, we use the compound interest formula.

The formula that gives the total value V(t) of the investment after t years is:

`V(t) = V_0(1+r)^t`

where

`V_0` is the initial value of the investment

r is the interest rate

t is the time (in years)

V(t) is the value of the investment after t years

In this problem:

`V_0=\$2000` is the initial investment

`r=2\% = 0.02` is the interest rate

Substituting, we find the final expression for this problem:

`V(t)=2000(1+0.02)^t`

which can be reduced to

`V(t)=2000(1.02)^t`