If a person invests $250 at 9% annual interest, find the approximate value of the investment at the end of 15 years.

Question

Mathematics

Janessa Eaton

19 September, 12:18

If a person invests $250 at 9% annual interest, find the approximate value of the investment at the end of 15 years.

+5

Answers (1)

Know the Answer?

Marin Byrd · Answer 1

Assume compounding once per year. Then A = P (1+r) ^t, where r is the annual interest rate as a decimal fraction and t is the number of years.

Then A = Value after 15 years = $250 (1+0.09) ^15 = $910.62