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Exponential Functions

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Determine the amount of an investment if \$2000 is invested at an interest rate of 7.2% compounded monthly for two years

Guest Feb 14, 2017
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5+0 Answers

#1
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I =?

P=2000

R= .072

T= 2

?=(2000)(.072)(2)

2000x.072=144

144x2=288

I = 288

Midway  Feb 14, 2017
#2
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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

ElectricPavlov  Feb 14, 2017
edited by ElectricPavlov  Feb 14, 2017
#3
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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

Guest Feb 14, 2017
#4
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EP: A slight error: 0.72/12 =0.006

Guest Feb 14, 2017
#5
+11306
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Thanx ! I corrected it.....

ElectricPavlov  Feb 14, 2017

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