Exponential Functions

Question

If 37100 dollars is invested at an interest rate of 10 percent per year, compounded semiannually, find the value of the investment after the given number of years. 

(a) 5 years: 

Your answer is  

(b) 10 years: 

Your answer is  

(c) 15 years: 

Your answer is

Answer 1

HI Ipe Y

You need the Future Value of the investment after the time periods you have listed

Here is a formula that you can look up or check in your textbook

FV = PV(1 + r/n)^nt

Where

FV = Future Value

PV= Starting or Present value, your 37100

r = interest rate (your 10% must be written as a decimal)

n = number of compounding periods, semiannually means you have 2 compounding periods

If this formula is consistent with your text then just plug in the values, give it a try?