Question

M = P * (1 + i) ^ r ": P=\$870,1=0.13 , n = 8

Answer 1

Question:

Solution:

Consider the following equation:

$M=P(1+i)^n$

where

P = 870, i = 0.13 and n = 8. Thus, if we replace these data, in the previous equation, we obtain:

$M=870(1+0.13)^8$

this is equivalent to:

$M=2312.8$

Thus, the correct solution is:

$M=2312.8$