Question

robin invests $55 at 10% compounded annually for 3 years. How much will her investment be worth in 3 years?

Answer 1

the investment after 3 years will be worth $73.21

Step-by-step explanation:

Amount invested = Principal

P = $55

n = number of time scompounded = annually

n = 1

rate = r = 10% = 0.1

FV = future value after 3 years

Using compound interest formula:

`FV\text{ = P(1 +}(r)/(n))^(nt)`

substituting the values in the formula:

`\begin{gathered} FV\text{ = }55(1\text{ + }(0.1)/(1))^(1*3) \\ FV\text{ = }55(1\text{ + }0.1)^3 \\ FV\text{ = }55(1.1)^3 \\ FV\text{ = 55(}1.331) \\ FV\text{ = 73.205 approx i}mately\text{ to nearest cents is }73.21 \end{gathered}`

Hence, the investment after 3 years will be worth $73.21