Amount of Money

Algebra

Amount of Money

Postby Guest » Mon Jun 14, 2021 10:24 am

One dollar is loaned for one hundred years, with 10% interest compounded annually. Determine amount.

One hundred years = 1200 months.

10% = .10

Unsure how to solve.
Guest
 

Re: Amount of Money

Postby Baltuilhe » Thu Jun 17, 2021 7:31 pm

Good night!!

As interest is compounded annually:
[tex]n=100\\
i=10\%\\
PV=1,00\\
FV=PV\cdot\left(1+i\right)^{n}\\
FV=1\cdot\left(1+10\%\right)^{100}\\
FV=1,1^{100}\\
FV\approx 13\,780,61[/tex]

Hope to have helped!

Baltuilhe
 
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Re: Amount of Money

Postby Guest » Sun Jun 20, 2021 4:17 pm

Ok, Thanks.
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