Question

The expression 1000(1.1)^t represents the value of a $1000 investment that earns 10% interest per year, compunded annually for t years. What is the value of a $1000 investment at the end of each period? 1) 2 years 2) 4 years

Answer 1

The answer is :
`2 ~Year: A=1000(1.1)^2 A=$1210 For 4 Year: A=1000(1.1)^4 A=$1464.10`