Question

The product of an initial investment, I, and the quantity of the sum of 1 and the annual interest rate, r, raised to the power of n, the number of years of the investment, is equal to M, the current amount of money in an investment account.

If an initial investment of $1,997.00 is made to an account with an annual interest rate of 7%, what will be the value of M after 6 years? Round to the nearest cent.

$2,835.74
$2,996.96
$1,292.04
$2,800.90

Answer 1

Use the formula:
\[\huge F = Pe^{r*t}\]

Answer 2

F = future value
P = current value
e = (math constant) and 2.71
r = rate
t = time (in years)

Answer 3

P = 1997
e = 2.71
r = 0.07
t = 6

plug it in and evaluate it

Answer 4

so do i multiply and add

Answer 5

you just multiply, use the formula i gave...

Answer 6

im not really getting either answer im using P and E but not getting either

Answer 7

i got over 5000

Answer 8

what is it that im doing wrong

Answer 9

\[\huge F = 1997(2.71^{.4})\]
do it from here...

Answer 10

ok im multiplying 2.71 4 times but still not getting it its over each answer chose i guess im not comprehending right

Answer 11

you're not suppose to multiply 2.71 to .4
.4 is an EXPONENT

Answer 12

oh i see now ive gotten 2268.4

Answer 13

No... that's wrong ...

Answer 14

u know wht it not helping and especially not helping telling people "how in the world do i not see that it is an exponent" im sorry im not like u sheesh

Answer 15

just nevermind ill figure it out

Answer 16

\[\large \color {green}{1,997\times \left(1.07\right)^6}\] and a calculator

Answer 17

http://www.wolframalpha.com/input/?i=1%2C997%281.07%29^6

Answer 18

there is no \(e\) in this