SOLUTION: Michael and Jessica decide to invest $2,000 in a portfolio of stocks for a time period of 5 years. They believe that the portfolio would give them a return on investment of 8%. Wha

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Question 1164855: Michael and Jessica decide to invest $2,000 in a portfolio of stocks for a time period of 5 years. They believe that the portfolio would give them a return on investment of 8%. What would be the total sum at the end of 5th year?


Answer by ikleyn(52908) About Me  (Show Source):
You can put this solution on YOUR website!
.

The formula for Future value is


    FV = 2000%2A%281%2B0.08%29%5E5 = 2000%2A1.08%5E5 = 2938.66 dollars.

For all details and explanations, look into these two lessons
    - Compound interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.


After reading these lessons, you will tackle such problems on your own without asking for help from outside.

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.


Happy learning (!)