Determine the amount of an investment if $2000 is invested at an interest rate of 7.2% compounded monthly for two years
+170 I =?
P=2000
R= .072
T= 2
?=(2000)(.072)(2)
2000x.072=144
144x2=288
I = 288
+36916 FV = PV (1+i)^n
i = periodic interest rate (monthly) = 7.2/12 =. 6%=.006 n= periods(months) = 2 x 12 = 24
FV=2000(1+.006)^24 = $ 2308.77
FV = PV[1 + R]^N
FV =2,000 x [1 + 0.072/12]^2*12
FV =2,000 x [1.006]^24
FV =2,000 x 1.154387292....
FV =$2,308.77
