Question

Suppose you invest $ 2,000 at 45% Interest

compounded daily. F(t) represents value of investments
in t years
A) Find equation For F(+)
B) use equation to find how much account will
be worth in 30 years round to nearest cent
C) How much you should invest now in
order to have 14.000 in 9 years round to the nearest cent

Answer 1

You will have $29,000 in 30 years, and you need to start with about $2,772.28 to make $14,000 in 9 years

Explanation:

To find the total investment use the equation
`A = P(1 + rt)`

Where A equals total investment, P is your start investment, r is your rate, and t is time.

`A=2,000(1+(0.45 * 30))`

`A=2,000(1+13.5)`

`A=2,000*14.5`

`A=29,000`

To find the start investment use the equation
`P = A / (1 + rt)`

`P=14,000/(1+(0.45*9))`

`P=14,000/(1+4.05)`

`P=14,000/5.05`

`P=2,772.28`