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If a person lnvests $120 at 8% annual interest, find the approximate value of the investment at the end of 5 years

User Luca Del Tongo
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1 Answer

21 votes
21 votes

Answer:

$176.3193692 or $176.32 (rounded to two decimal places)

Explanation:

It is a compound interest, which means the interest accumulates on an initial amount each period.

The formula is A=P(1+R)^n

A= the total amount P=initial amount R=rate n=time (years)

P=$120 Rate= 8% or 0.08 (decimal) n=5 (years)

A=120 (1+0.08)^2

A=120 (1.469328077)

A= 176.3193692

User Akora
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