Question

If the present value of an item is P
and we experience an inflation rate
of r for t years, what will the future
value of the item be?
P = $20,000
r= 6%
t= 25

Answer 1

Answer:

  $85,837.41

Step-by-step explanation:

The future value will be ...

  P(1 +r)^t

  $20,000(1 +.06)^25 ≈ $85,837.41

Answer 2

Answer:

89633.78

Step-by-step explanation:

Pe^r(t)

20.000e^.06(25)