Question

) You invested your allowance of $270 which gets 15% compounded annually for 3 years.

How much will you have in 3 years?

Answer 1

$410.64

Explanation:

start with the compound interest formula

plug in p=270 , r=0.15 (divide 15 by 100 to get 0.15), n=1, and t=3

divide 0.15 by 1 to get 0.15

multiply the exponents 1 and 3 to get 3

add 1 and 0.15 to the 3 th power to get 1.520875

multiply 270 and 1.520875 to get 410.63625

so if you invest $270 at an interest rate 15%, which is compounded 1 times a year for 3 years, the return is about $410.64 (which is rounded to the nearest cent)

Then you'll have $410.64 in 3 years.

Answer 2

BELOW

Explanation:

The equation ( you need to commit to memory) is:

FV = PV ( 1+i)^n FV = future value PV = present value(270)

i = decimal interest per PERIOD = .15

n = # of periods = 3 (it is an ANNUAL Period)

FV = 270 ( 1 + .15)^3 = 410.63 dollars