future value

Jul 2010
18
0
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
 
Dec 2007
3,184
558
Ottawa, Canada
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)
 
Jul 2010
18
0
thanks! is that standard formula the formula for annuity?
 
Dec 2007
3,184
558
Ottawa, Canada
Yes.; for the future value of an annuity.
"Annuity" is just another word for a regular periodic deposit/contribution/investment/whatever !