The value V, of a $100,000 investment that earns 3% annual interest is given by V=f(t) where t is in years. How much is the investment worth in 3 years
f(3)
75000
433
109000
To calculate the value of the investment in 3 years, we can use the formula provided: V = f(t) = $100,000.
Since the investment earns a 3% annual interest, we need to calculate the interest gained over the 3-year period. The interest gained each year can be computed by multiplying the initial investment ($100,000) by the interest rate (3%) and dividing by 100:
Interest gained = ($100,000 * 3) / 100 = $3,000 per year.
To find the total value of the investment in 3 years, we sum the initial investment with the accumulated interest:
Total value = initial investment + interest gained * number of years
Total value = $100,000 + ($3,000 * 3) = $100,000 + $9,000 = $109,000.
Therefore, the investment will be worth $109,000 in 3 years.