Shota invests $2000 in a certificate of deposit that earns 2%, percent in interest each year. Write a function that gives the total value V (t) in dollars, of the investment t years from now.

Question

Mathematics

Charity Cross

9 January, 10:59

Shota invests $2000 in a certificate of deposit that earns 2%, percent in interest each year. Write a function that gives the total value V (t) in dollars, of the investment t years from now.

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Answers (2)

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Andrew Russell · Answer 1

The value after t years will be given by compound interest formula given by:

A=P (1+r) ^n

where:

A=future value

P=principle

r=rate

n=number of years

Thus plugging in our values we get:

V (t) = 2000 (1+2/100) ^t

simplifying this gives us:

V (t) = 2000 (1.02) ^t

Answer: V (t) = 2000 (1.02) ^t

Steven Cummings · Answer 2

For this case we have a function of the form:

y = A (b) ^ t

Where,

A: initial amount

b: growth rate

t: time

Substituting values we have:

V (t) = 2000 (1.02) ^ t

Answer:

a function that gives the total value V (t) in dollars, of the investment t years from now is:

V (t) = 2000 (1.02) ^ t