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
likes412 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?
Timmothy
4.899 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 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 approximately139789.51
2. Substitute the given values:
3. Simplify the expression:
4. Further simplify inside the parentheses:
5. Which simplifies to:
6. Calculate the exponent:
7. Multiply to find:
Thus, the total money in Luis's investment after 5 years will be approximately
Frequently asked questions (FAQs)
Math question: Find the extrema of the function f(x) = 3x^4 - 4x^3 + 6x^2 - 2x + 1 over the interval [-2, 2].
+
What is the value of the adjacent side when the angle is 30 degrees and the hypotenuse is 10 units?
+
What is the length of an unknown side in a triangle with an angle of 45Β°, a side length of 5, and an opposite angle of 30Β°?
+
New questions in Mathematics