Q2)    2, You invest $3,000 for three years at 12 percent.   a. What is the value of your investment after one year? Multiply $3,000 × 1.12. b. What is the value of your investment after two years? Multiply your answer to part a by 1.12. c. What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer. Combine these three steps by using the formula  to find the future value of $3,000 in 3 years at 12 percent interest.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
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Q2) 

 

2, You invest $3,000 for three years at 12 percent.

 

  • a. What is the value of your investment after one year? Multiply $3,000 × 1.12.
  • b. What is the value of your investment after two years? Multiply your answer to part a by 1.12.
  • c. What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer.
  • Combine these three steps by using the formula  to find the future value of $3,000 in 3 years at 12 percent interest.
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