Question

The expression (1500(1.14)ᵗ ) represents the value of a $1500 investment that earns 14% interest per year, compounded annually for (t ) years. What is the value of a $1500 investment at the end of five years?

a) $2348.03
b) $1701.00
c) $1917.44
d) $2541.36

Answer 1

The expression (1500(1.14)ᵗ) represents the value of a $1500 investment that earns 14% interest per year, compounded annually for (t) years. The value of a $1500 investment at the end of five years is $2541.36.

Step-by-step explanation:

The expression (1500(1.14)ᵗ ) represents the value of a $1500 investment that earns 14% interest per year, compounded annually for (t ) years. To find the value of a $1500 investment at the end of five years, we plug in the value of t as 5 into the expression.

Let's calculate:

(1500(1.14)^5) = $2541.36

Therefore, the value of a $1500 investment at the end of five years is $2541.36.