please help meeee!!!!

Question

The function V(t) = 1, 000 * (1.06) ^ (2t) the value of an investment after t years .

What does the coefficient “2” represent in the exponent of the function ?

A. the number of compounding periods per year

B. the total amount of money earned in the investment

C. the initial amount of money invested

D. the interest rate of the investment

Answer 1

The normal formula is P(1+i/n)^(nt), where i is the interest, t is time, and n is the number of periods per time-unit. Not knowing what unit the interest is in, it must be years, so the 2 must be the periods per year.

B is the V(T) in the equation, C is 1000 , and D is 0.12 (0.12/2 = 0.06)