Use the compound interest formulas A=P(1+(r)/(n))^nt and A=Pe^rt to solve.

Question

Find the accumulated value of an investment of $17,000 at 6% compounded annually for 13 years.

Answer 1

the underlying formula that you want to use here for compound interest is

A = P(1 + r/n)^nt

for this scenario that means taking

A = 17000(1 + 0.06/1)^(1*13)

A = 17000(1.06)^13

A = 36259.78

meaning that after 13 year in this situation, the investment will be worth $36,259.78

Answer 2

Hello, Shaukat,

p=principal amount invested=$17,000          r=6%=.06   Always change percent to a decimal  t=time in years,

n=# of times per year that the amount is compounded

 

a=amount of principal plus the compounded or continuous interest depending on the formula used

 

A=p(1+ (r/n))^(nt)          A= $17,000 ( 1+ (.06/1 ))^ 1*13   =  17000 (1 +.06)^ (13)=17,000 (1.06)^13

Please finish this compound formula problem.

 

A=pe^(rt)  pert formula  Interest is compounded all the time.    e≅2.71

A=17,000 (e^(.06(13))      The graphing calculator has an e^(   )  key. Press 2nd ln

I will let you finish your problems.  Susan C.