SOLUTION: Can someone help me how to solve this problem. I appreciate it. As the prize in a​ contest, you are offered ​$16,000 now or $ 18,700 in 6 years. If the money can be

Algebra ->  Finance -> SOLUTION: Can someone help me how to solve this problem. I appreciate it. As the prize in a​ contest, you are offered ​$16,000 now or $ 18,700 in 6 years. If the money can be      Log On


   

Question 1099585: Can someone help me how to solve this problem. I appreciate it.
As the prize in a​ contest, you are offered ​$16,000 now or $ 18,700 in 6 years. If the money can be invested at 5% compounded​ annually, which prize will be worth more in 6 ​years?
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
If you invest the $16000, you can have this amount in 6 years,
F=16000%281%2B%285%2F100%29%29%5E6
F=16000%281.05%29%5E6
F=16000%281.340096%29
Work that out to see which method gives you more money in 6 years.