## Alberta Free Tutoring And Homework Help For Math 10C

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### John wants to have $2000 in 3 years. The current rate of return for a high interest savings account is 2.8%, compounded annually. How much must John invest now to have$2000 in 3 years?

7 years ago

V = P(1+r/n)(nt)

V = the future value of the investment=2000P = the principal investment amountr = the annual interest rate=2.8%n = the number of times that interest is compounded per year=1t = the number of years the money is invested for=3

2000=P(1+ $\frac{2.8}{100}$2.8100  )   $^{\left(3\times1\right)}$(3×1)  =P(1.086374)

$\therefore$   P=1840.987

7 years ago

V = P(1+r/n)(nt)

V = the future value of the investment=2000

P = the principal investment amount

r = the annual interest rate=2.8%

n = the number of times that interest is compounded per year=1

t = the number of years the money is invested for=3

2000=P(1+ $\frac{2.8}{100}$2.8100  )   $^{\left(3\times1\right)}$(3×1)  =P(1.086374)

$\therefore$   P=1840.987