Jorgen made deposits of $250 at the end of each year for 12 years. The rate received was 6% annually. What's the value of the investment after 12 years?

FV = P([tex] \frac{ (1+r)^{n}-1 }{r} [/tex])

Where, FV = Value after 12 years, P= Yearly deposits = $250, r= Rate = 6% = 0.06, n=Number of years = 12 years.

Then,
FV= 250 ([tex] \frac{( 1+0.06)^{12} -1 }{0.06} [/tex]) = $4,217.50

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EamonnAdams1992 EamonnAdams1992 · Answer 2 · 2019-08-20T10:27:17+02:00

Answer:

$430

Step-by-step explanation:

We can use the simple interest rate formula to calculate the investment value after 12 years. The formula is:

[tex]A=P*(1+r*t)[/tex]

Where A is the value of the amount after investment, P is the intitial investment, r is the rate and t is the time invested.

Therefore $250 at a rate of 6% for 12 years:

[tex]A=250*(1+0.06*12)=430[/tex]

The value of the investment after 12 years is $430