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

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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) About Me  (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