If $P Is Invested for N Years at Rate I

question 42

Multiple Choice

If $P is invested for n years at rate i (as a decimal) , compounded annually, the future value that accrues is given by , and the interest earned is Find I for the given P, n, and i. Round your answer to two decimal places. $1800 for 5 years at 10%.

• A) $2898.92
• B) $835.38
• C) $1062.88
• D) $1098.92
• E) $4698.92

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Definitions:

Percent Increase

The proportionate growth of a value over time, expressed as a percentage of the initial amount.

Successive Years

A term used to describe years that follow one after another without interruption.

Loan

A borrowed amount of money that is to be repaid along with interest.

Investment

The distribution of funds or other resources with the aim of earning revenue or profit.