Question
Suppose you had $1000 invested at 6% compounded annually for 26 years, what would the current value be?
Answers
Henry
Pt = Po * (1 + r)^n
r = 0.06 = rate per compounding period.
n = 26 = the number of compounding periods.
Pt = 1000 * (1.06)^26 = 4549.38 =
principal after 26 yrs.
r = 0.06 = rate per compounding period.
n = 26 = the number of compounding periods.
Pt = 1000 * (1.06)^26 = 4549.38 =
principal after 26 yrs.