On January 1 of the years 2012, 2013, 2014 you will invest $10,000. What will your investment be worth on January 1, 2014 if the rate of return is 10%? just want to make sure if the equation is right 10,000(1.1)^2 + 10,000(1.1) + 10,000
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I don't think it's wrong.
That's correct. By formula: 1000(1.10^3 - 1) / .10 = 3310 Standard formula : A[(1 + i)^n - 1] / i A = Amount of regular investment (1000) i = interest rate (.10) n = number of periods (3)
thanks! is that standard formula the formula for annuity?
Yes.; for the future value of an annuity. "Annuity" is just another word for a regular periodic deposit/contribution/investment/whatever !
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