Question

Shota invests \$2000$2000dollar sign, 2000 in a certificate of deposit that earns 2\%2%2, percent in interest each year.

Answer 1

The complete question is:

Shota invests $2000 in a certificate of deposit that earns 2%, percent in interest each year. Write a function that gives the total value V(t) in dollars, of the investment t years from now.

Given:

(i) Shota invests $2000 in a certificate of deposit.

(ii) She earns 2% interest p.a.

To find:

(i) The function that gives the total value V(t) in dollars, of the investment t years from now.

Solution:

Principal amount (P) is $2000

Rate (R) is 2% p.a.

Time (T) is 't' years.

So,

Simple Interest (SI) = PRT/100

= 2000*2*t/100

= 40t

Total value V(t) = Principal Value + Interest

= 2000+40t

So, V(t) = 2000+40t  is the required function.

Answer 2

Answer:

The actual answer is V(t)= 2000(1.02)^t

Step-by-step explanation:

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