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7 November, 15:58

The expression 2500 (1.06) ^t represents the value of a $2500 investment that earns 6% interest per year, compounded annually for t years, what is the value of a $2500 investment at the end of 3 years?

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  1. 7 November, 19:34
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    All you have to do to arrive at the desired answer here is to substitute 3 for t in the given expression 2500 (1.06) ^t.

    It is important that you know this formula and how to use it.

    If t = 3 years, then you'd have $ 2500 (1.06) ^3 = $2500 (1.19) = $2977.54
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