Question

You have an investment proposition infront of you and you have to invest 1000 dollers in a project and after 4 years you can sell the investment. you would earn 4% paid annually. How much would you have at the end of 4 years?​

Answer 1

Answer:

1170 DOLLARS APPROXIMATELY

Explanation:

This problem can be solved by using geometric progression where a sequence is formed by multiplying a number "a" with a fixed number "r"

The general term  formula is

$=(a) (r)^{n-1}$

where n is the term number

We get 4 percent every year this means (100+4) percent of the actual value at the beginning of the year. Suppose we have 100 rupees, we get (100+4)=104 at the end of the year ( or the starting of 2 year)

so r= 104 percent= 104/100= 1.04

n=5 years (since at the end of 4 years, we will have the same value as the beginning of 5 years)

and a =1000 (starting money)

so money at the end of 4 years(or the starting of 5 years )= $(1000) (1.04)^{5-1}$

$= (1000) (1.04)^{4} \\=(1000) (1.17)\\=1170$dollars approximately