Question

If a person invests $290 at 6% annual interest, find the approximate value of the investment at the end of 15 years

Answer 1

In this question , we have to use the formula of simple interest and find the interest first.

`I = P R T`

P is the principal which is $290.

R is the rate of interest which is 6 % or 0.06

And T is the time period which is 15 years .

Substituting the values of P ,R and T, we will get

`I = 290* 0.06*15 = 261`

And amount after 15 years = Prinipal + interest

That is

`Amount = 290+261= $551`

Answer 2

A = $ 695.00

Explanation:

given,

person invests money = $290

interest rate = 6 %

time for which the investment is done = 15 years.

using compound interest formula

`A =P * (1+(r)/(100))^t`

`A= 290 * (1+(6)/(100))^(15)`

A = $ 695.00

Hence, the approximate value after investment for 15 years comes out to be

A = $ 695.00