Mrs. Eva invested 100,000 in a company that offers 6% interest compounded annually. Define an exponential model for this situation. How much will this investment be worth at the end of each year for the next 5 years? (SHOW SOLUTION)
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Answer:
f=p (times) (1+r)^n
Step-by-step explanation:
f is the future value
p is the present value
r is the interest rate per time period (years)
n is the number of time periods (years)
using this formula, you get for each year the following:
f = 100,000 * (1.06)^n
100,000
106,000
112,360
119,101.6
126,247.696
133,822.5578
Hope its help correct me if im wrong