SOLUTION: Hi, Can you show me how to get the correct answer and the formula that should be used for the following problem: Is it more profitable to receive $2000 now or $3500 in 10 years

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Question 855952: Hi,
Can you show me how to get the correct answer and the formula that should be used for the following problem:
Is it more profitable to receive $2000 now or $3500 in 10 years? Assume that money can earn 6% interest compounded monthly.
Thank you in advance
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

2000 in 10 years: 6% interest compounded monthly. 

A%2810%29+=+2000%281%2B.06%2F12%29%5E%2812%2A10%29

A%2810%29+=+2000%281.005%29%5E%28120%29

Compare that to $3500