Question

the expression 1000(1.1)^t represents the value of a $1000 investment that earns 10% interest per year compounded annually for t years. find the value of a $1000 investment at the end of each period.

Answer 1

Given that an investment has been modeled by the function:
f(t)=1000(1.1)^t
the value of investment after each period will be as follows;
at the end of period 1, t=1. The value will be:
f(t)=1000(1.1)^1
=$1,100

the value of the investment after the 2nd period, t=2 will be:
f(2)=1000(1.1)^2
f(2)=$1,210

This can be used to find out the value of the investment when t=0,1,2....