Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $1020 at 6% compounded annually for 19 years.
A) $3086.11
B) $2911.43
C) $2121.60
D) $2182.80

Question

Quizplus · Accepted Answer

Using the formula $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 1020$, $r = 0.06$ (6% as a decimal), $n = 1$ (compounded annually), and $t = 19$ years, we calculate the accumulated value as follows: $A = 1020 \left(1 + \frac{0.06}{1}\right)^{1 \times 19} = 1020 \left(1.06\right)^{19} \approx 3086.11$.

Use the Compound Interest Formulas A A=P(1+rn)nt and A=Pert to solve. A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }A=P(1+nr​)nt and A=Pert to solve.

Use the Compound Interest Formulas A $A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$