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12 years ago, Chris purchased an investment for $57,000. The investment earned 9 percent interest each year. Using the equation method, what is the worth of the investment today

Answer :

Abotaiwo

Answer:

$160,321.89

Explanation:

The worth of the investment today can be calculated with the following formula

            FV  = P(1 + r )^n

Where: FV  =  Future Value of investment

               P  = Initial investment

                r  = Rate of interest

                r  = Number of years

               

               P  =  $57,000

                r  = 9 percent = 9%

                r  = 12 years

             FV  = 57,000(1 + 9% )^12

             FV  = 57,000(1 + 0.09 )^12

             FV  = 57,000(1.09 )^12

             FV  = 57,000(2.812664782)

             FV  = $160,321.8926

             FV  = $160,321.89

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