SOLUTION: If $1000 is invested at 7.5% compounded annually, find the future value that results in 30 years to the nearest $1.

Question 38435: If $1000 is invested at 7.5% compounded annually, find the future value that results in 30 years to the nearest $1.
Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
I think the equation here is
P = P0 * e^(rt)
so plugging in we get
P = 1000 * e^(.075 * 30)
P = 9487.74 or $9488 to the nearest dollar
I've had second thoughts on this one...the formula I gave you was when the monies are compounded continuously, not annually as the problem poses...
Thus I think the correct formula is
P = P0 * (1 + r)^t
P = 1000 * (1.075)^30
P = 8754.96 or $8755 to the nearest dollar
RELATED QUESTIONS
If $3677 is invested at 6.14% for 4 years, find the future value if the interest is... (answered by ikleyn,MathTherapy)

What is the future value of $7,200 invested for 8 years at 7 percent compounded... (answered by ikleyn)

1. If you lend $3600 to a friend for 15 months at 10% annual simple interest, find the... (answered by stanbon)

What is the future value, to the nearest hundredth of a dollar, if $4600.00 is invested... (answered by jim_thompson5910)

find the future value if 1000 if invested for 20 years at 8% compounded continously. (answered by jorel1380)

(future value) $5,100 invested for 10 years at $11 compounded annually will accumulate to (answered by rfer)

Find the value, in 10 years� time, of $1000 invested at 8% interest compounded... (answered by Boreal,MathTherapy)

If $39,500 is invested at 6.3% for 30 years, find the future value if the interest is... (answered by Theo)

If $33,500 is invested at 6.1% for 30 years, find the future value if the interest is... (answered by kennydismuke)