Question

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

Answer 1

Principal Amount = P = $250

Interest Rate = r = 9% = 0.09

Time in years = t = 15 years

Value of investment = A = ?

The formula to calculate the value on investment as a result of annual interest is:

`A=P(1+r)^(t)`

Using the values in the above formula, we get:

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Thus, at the end of 15 years the value of the investment will be $ 910.62.