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

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

anonymous · Answer

this the same question as before?

anonymous · Answer

yes i know im actually trying to understand it instead of being talked about in a chat because i cant figure it out

anonymous · Answer

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

anonymous · Answer

$$\large 1,997\times \left(1.07\right)^6$$ is what you need to compute

anonymous · Answer

thank u thts wht i was just doing

anonymous · Answer

calculator says $2,996.96

anonymous · Answer

i really appreciate your help