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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