Question 468936: In 1990, a person places $1,000 in an investment that earned 10% interest, compounded annually. Calculate the value of the investment for the years 1991, 1992, and 1993.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! In 1990, a person places $1,000 in an investment that earned 10% interest, compounded annually. Calculate the value of the investment for the years 1991, 1992, and 1993.
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Answer for 1992:
A(t) = P(1 + (r/n))^(nt)
A(2) = 1000(1+(0.10/1))^(1*2)
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A(2) = 1000(1.10)^2 = $1210.00
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Cheers,
Stan H.
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