Problema Solution
Kim has $500 she wants to invest for the next 6 months. If she finds an investment that averages 2% return monthly, how much can she expect her investment to be worth after the 6 months is up?
Answer provided by our tutors
P = $500
r = 0.02 or 2% per month
t = 6 months
A = the future value
A = P(1 + r)^t
A = 500(1 + 0.02)^6
A = $563.08
After 6 months Kim's investment will be worth $563.08.