Question

Which expression represents the growth of an investment of $1,500 at 12% per year for a period of t years?
A. 1500(12)t
B. 1500(0.12)t
C. 1500t1.12
D. 1500(1.12)t

Answer 1

Given:

An investment of $1,500 at 12% per year for a period of t years

To find:

The expression representing the growth of an investment

Solution:

We know the formula for calculating the future value of an investment is as follows:

$\boxed{\bold{FV = PV[1 + i]^n}}$

where

FV = future value of an investment

PV = Present value

i = rate of interest

n = no. of years

Here we have

PV = $ 1500

i = 12%

n = t years

Therefore, on substituting the values in the formula, we get

$FV = 1500 [1 + \frac{12}{100} ]^t$

$\implies FV = 1500 [1 + 0.12 ]^t$

$\implies \bold{FV = 1500 [1.12 ]^t}$ ← option (D)

Thus, the expression that represents the growth of an investment of $1,500 at 12% per year for a period of t years is → $\boxed{\bold{1500 [1.12 ]^t}}$.

----------------------------------------------------------------------------------------------

Also View:

If Mr. John Chrystal invests $6,000 today (Present Value) at a compound interest of 9 percent, calculate the Future Value of the investment after 30 years using the compound interest formula. In addition, calculate the Future Value of the investment 30 years from now using a 9 percent simple interest rate. State the difference between the two Future Values (using compound and simple interest).

https://brainly.in/question/5765479

you invest ₹3000 in a 2-year investment that pays you 12% per annum. calculate the future value of the investment​

https://brainly.in/question/12819826

At what rate of interest per annul should Rita invest if she wants to grow Her rupees 2500 to 4000 in five Years?

https://brainly.in/question/5156004