Question

M = P * (1 + i) ^ r ": P=\$870,1=0.13 , n = 8

Answer 1

Question:

Solution:

Consider the following equation:

`M=P(1+i)^n`

where

P = 870, i = 0.13 and n = 8. Thus, if we replace these data, in the previous equation, we obtain:

`M=870(1+0.13)^8`

this is equivalent to:

`M=2312.8`

Thus, the correct solution is:

`M=2312.8`