To find the maturity value of the deposit, we need to use the formula for compound interest. The formula is:

$$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$

where:
- $ A $ is the maturity value (the amount of money accumulated after n years, including interest).
- $ P $ is the principal amount (the initial amount of money).
- $ r $ is the annual interest rate (in decimal form).
- $ n $ is the number of times that interest is compounded per year.
- $ t $ is the time the money is invested for, in years.

Given:
- $ P = 1750 $
- $ r = 0.05 $ (assuming the interest rate is 5%)
- $ n = 1 $ (assuming the interest is compounded annually)
- $ t = 2 $

Now, plug these values into the formula:

$$ A = 1750 \left(1 + \frac{0.05}{1}\right)^{1 \times 2} $$

$$ A = 1750 \left(1 + 0.05\right)^2 $$

$$ A = 1750 \left(1.05\right)^2 $$

$$ A = 1750 \times 1.1025 $$

$$ A = 1929.375 $$

So, the maturity value after 2 years is $1,929.38 (rounded to the nearest cent).

Question

To find the maturity value of the deposit, we need to use the formula for compound interest. The formula is:

$$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$

where:
- $ A $ is the maturity value (the amount of money accumulated after n years, including interest).
- $ P $ is the principal amount (the initial amount of money).
- $ r $ is the annual interest rate (in decimal form).
- $ n $ is the number of times that interest is compounded per year.
- $ t $ is the time the money is invested for, in years.

Given:
- $ P = 1750 $
- $ r = 0.05 $ (assuming the interest rate is 5%)
- $ n = 1 $ (assuming the interest is compounded annually)
- $ t = 2 $

Now, plug these values into the formula:

$$ A = 1750 \left(1 + \frac{0.05}{1}\right)^{1 \times 2} $$

$$ A = 1750 \left(1 + 0.05\right)^2 $$

$$ A = 1750 \left(1.05\right)^2 $$

$$ A = 1750 \times 1.1025 $$

$$ A = 1929.375 $$

So, the maturity value after 2 years is $1,929.38 (rounded to the nearest cent).

Knowee AI · Accepted Answer

To find the maturity value of the deposit, we need to use the formula for compound interest. The formula is:

$$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$

where:
- $ A $ is the maturity value (the amount of money accumulated after n years, including interest).
- $ P $ is the principal amount (the initial amount of money).
- $ r $ is the annual interest rate (in decimal form).
- $ n $ is the number of times that interest is compounded per year.
- $ t $ is the time the money is invested for, in years.

Given:
- $ P = 1750 $
- $ r = 0.05 $ (assuming the interest rate is 5%)
- $ n = 1 $ (assuming the interest is compounded annually)
- $ t = 2 $

Now, plug these values into the formula:

$$ A = 1750 \left(1 + \frac{0.05}{1}\right)^{1 \times 2} $$

$$ A = 1750 \left(1 + 0.05\right)^2 $$

$$ A = 1750 \left(1.05\right)^2 $$

$$ A = 1750 \times 1.1025 $$

$$ A = 1929.375 $$

So, the maturity value after 2 years is $1,929.38 (rounded to the nearest cent).

A parent saving for their child’s college tuition deposits $1,750 into an account that earns % interest per year. The money is left in the account for 2 years. Find the maturity value.

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