SOLUTION: Mrs. Dela Cruz invested 100,000 in a company that offers 6% interest compounded anually. Define an exponential model for this situation. How much will this investment be worth at t

Question 1046944: Mrs. Dela Cruz invested 100,000 in a company that offers 6% interest compounded anually. 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?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n

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)

formula becomes:

f = 100,000 * (1.06) ^ n

using this formula, you get for each year the following:



n          f = 100,000 * (1.06)^n

0              100,000
1              106,000
2              112,360
3              119,101.6
4              126,247.696
5              133,822.5578

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