Question

if a person invests $230 at 10% annual interest fund the approximate value of the investment at the end of 10 years

Answer 1

If it is simple interest rate
10% of $230 = 0.1 x 230 = 23
23 x 10 years = 230
total = 230 + 230 = $460

If it is compounded
230(1+0,1)^10 = $596.56

Answer 2

$480.

Explanation:

We have been given that a person invests $230 at 10% annual interest fund. We are asked to find the approximate value of the investment at the end of 10 years.

We will use simple interest formula to solve our given problem.

`A=P(1+rt)`, where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

`10\%=(10)/(100)=0.10`

Upon substituting our given values, we will get:

`A=\$240(1+0.10*10)`

`A=\$240(1+1)`

`A=\$240(2)`

`A=\$480`

Therefore, the value of investment at the end of 10 years is $480.