You have an investment that will pay you. 67 percent per month. a. How much will you have per dollar invested in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. How much will you have per dollar invested in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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Business

Madalyn Cantrell

22 July, 02:07

You have an investment that will pay you. 67 percent per month. a. How much will you have per dollar invested in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. How much will you have per dollar invested in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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Answers (1)

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Bello · Answer 1

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Explanation:

Giving the following information:

You have an investment that will pay you. 67 percent per month.

Interest rate = 0.67/100 = 0.0067

We need to use the following formula:

FV = PV * (1+i) ^n

In one year, we will have:

FV = 1 * (1.0067^12)

FV = $1.08

In two years:

FV = 1 * (1.0067^24)

FV = $1.17