What does this symbol represent and how do I put it in a financial calculator? -

Question

What does this symbol represent and how do I put it in a financial calculator?

- $2,660. Future value using Simple interest is $2,660. Future Value using Compound Interest-$2,000 x (1 + 11%) ^ 3 $2,000 x 1.3676 S2,735.26. Future Value using Compound Interest is $2,735.26 Difference $2,735.26-S2,660 - $75.26. Difference between future value using Compound interest and simpl Note: A future value calculated using Excel or financial calculator formula p value. here in this case A future value calculated using Excel or financ

Explanation / Answer

Financial calculator input

N 3

^ is raised to power symbol, also called exponent Like we have 2^2 which means square of 2, hence 2*2 = 4 Similarly 5^2 = 5*5 = 25 Present value PV 2000 Rate 11% or 0.11 (in decimal form) n or time is 3yrs Future Value formula is = Present Value * ((1+r)^n) Substituting values in the formula 2000* ((1.11)^3) 2000* 1.367631 2735.26

Financial calculator input

N 3

I/Y 11% PV 2000 PMT can be left blank Compute FV

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