$MathMaster logo$

MathMaster

Home
general
luis decides to invest 120 000 in a mutual fund that offers him 3 1 compound interest annually this means that each year t

Question

Luis decides to invest $120,000 in a mutual fund that offers him 3.1% compound interest annually. This means that each year, the amount of money he has in the fund increases by 3.1% compared to the previous year. How much total money will there be in Luis's investment after 5 years?

82

likes

412 views

Answer to a math question Luis decides to invest $120,000 in a mutual fund that offers him 3.1% compound interest annually. This means that each year, the amount of money he has in the fund increases by 3.1% compared to the previous year. How much total money will there be in Luis's investment after 5 years?

$Expert avatar$

4.8

99 Answers

1. Use the compound interest formula:

A = P \left(1 + \frac{r}{n}\right)^{nt}

.

2. Substitute the given values:

P = 120,000

,

r = 0.031

,

n = 1

, and

t = 5

.

3. Simplify the expression:

A = 120,000 \left(1 + \frac{0.031}{1}\right)^5

.

4. Further simplify inside the parentheses:

A = 120,000 \left(1 + 0.031\right)^5

.

5. Which simplifies to:

A = 120,000 \left(1.031\right)^5

.

6. Calculate the exponent:

A=120,000\left(1.1649\right)

.

7. Multiply to find:

A\approx139789.51

.

Thus, the total money in Luis's investment after 5 years will be approximately

139789.51

.

Frequently asked questions (FAQs)

What is the axis of symmetry and vertex of the quadratic function f(x) = x^2?

+

What is the length of a side of a square given its area is twice the area of another square with a side length of 5 units?

+

What is the quadratic formula to solve for x in the equation ax^2 + bx + c = 0?

+

New questions in Mathematics

A circular park has a diameter of 150ft. A circular fence is to be placed on the edge of this park. Calculate the cost of fencing this park if the rate charged is $7 per foot. Use π = 3.14.

By differentiating the function f(x)=(x³−6x)⁷ we will obtain

3x+5y=11 2x-3y=1

Perpetual annuities are a series of payments whose duration has no end. Explain how can we calculate them, if they have no end?

In a store, a person carries 14 kilos of rice and 28 kilos of flour. In what ratio are the kilos found? (Remember to simplify until you reach an irreducible fraction)

How many anagrams of the word SROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.

Solve the equation: sin(2x) = 0.35 Where 0° ≤ x ≤ 360°. Give your answers to 1 d.p.

A recurring sequence is one where elements repeat after completing one standard. If the sequence AB8C14D96AB8C1... is recurring its twentieth term is equal to: (A) B. (B) 8. (C) A. (D) 6. (E) D.

Convert 9/13 to a percent

Use a pattern to prove that (-2)-(-3)=1

Determine a general formula (or formulas) for the solution to the following equation. Then, determine the specific solutions (if any) on the interval [0,2π). cos30=0

How to convert 45 kg into grams

48 kg of 30% sulfuric acid in a mixture of 10% and 40% sulfuric acid arose. How many kilograms were each of the original solutions?

0<x<2π aralığındaki f(x)=x÷2 fonksiyonunun 0 < x < 4π için grafiğini çiziniz ve 0<x<2n için Fourier seri dönüşümünü gerçekleştiriniz.

To paint a 250 m wall, a number of workers were employed. If the wall were 30 m longer, 9 more workers would be needed. How many were employed at the beginning?

Determine the general solution of the equation y′+y=e−x .

The car with an irresponsible driver starts to brake when it goes through a red light. When passing the traffic light, he does so at a speed of 115 kph in the right lane. Further ahead, 70 meters from the traffic light, a child is crossing the street and falls. If the effect of the car's brakes is equivalent to a deceleration of magnitude 5.7m/s². Is the child hit by the car or not? How far from the traffic light does the car stop?