$MathMaster logo$

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)

Math question: Given the sine function f(x) = sin x, find the amplitude, period, phase shift, and vertical shift.

+

What is the value of 5 squared plus the square root of 64, raised to the power of 3?

+

What is the formula for variance in statistics?

+

New questions in Mathematics

Y=-x^2-8x-15 X=-7

We have spent 1/4 of the inheritance on taxes and 3/5 of the rest on buying a house. If the inheritance was a total of €150,000 How much money do we have left?

find all matrices that commute with the matrix A=[0 1]

What is the total tolerance for a dimension from 1.996" to 2.026*?

find f(x) for f'(x)=3x+7

3. A rock is dropped from a height of 16 ft. It is determined that its height (in feet) above ground t seconds later (for 0≤t≤3) is given by s(t)=-2t2 + 16. Find the average velocity of the rock over [0.2,0.21] time interval.

The market for economics textbooks is represented by the following supply and demand equations: P = 5 + 2Qs P = 20 - Qd Where P is the price in £s and Qs and Qd are the quantities supplied and demanded in thousands. What is the equilibrium price?

A researcher is interested in voting preferences on change of the governing constitution in a certain country controlled by two main parties A and B. A questionnaire was developed and sent to a random sample of voters. The cross tabs are as follows Favour Neutral Oppose Membership: Party A 70 90 85 Party B 50 50 155 Test at α = 0.05 whether party membership and voting preference are associated and state the conditions required for chi-square test results to be valid.

TEST 123123+123123

User One of the applications of the derivative of a function is its use in Physics, where a function that at every instant t associates the number s(t), this function s is called the clockwise function of the movement. By deriving the time function we obtain the velocity function at time t, denoted by v(t). A body has a time function that determines its position in meters at time t as S(t)=t.³√t+2.t . Present the speed of this body at time t = 8 s.

find missing measure for triangle area = 48 m square base = 10m heaighy = ? m

94 divided by 8.75

Given two lines 𝐿1: 𝑥 + 4𝑦 = −10 and 𝐿2: 2𝑥 − 𝑦 = 7. i. Find the intersection point of 𝐿1 and 𝐿2.

a) 6x − 5 > x + 20

the product of a 2-digit number and a 3-digit number is about 50000, what are these numbers

A plant found at the bottom of a lake doubles in size every 10 days. Yeah It is known that in 300 days it has covered the entire lake, indicate how many days it will take to cover the entire lake four similar plants.