Question

You invest $3,000. You have speculated that you will earn an average of 7% on your initial investment each year. What do you expect the total value to be in ten years?

Answer 1

To find the expected total value of a $3,000 investment at an average annual return of 7% after ten years, use the compound interest formula $3,000(1.07)^10.

Step-by-step explanation:

If you invest $3,000 and expect to earn an average of 7% on your initial investment each year, the value of the investment after ten years can be calculated using the compound interest formula:

The formula for compound interest is P(1 + r)^n, where P is the principal amount ($3,000), r is the annual interest rate (7% or 0.07), and n is the number of years (10).

Plugging in the numbers:

$3,000(1 + 0.07)^10

You would calculate it as:

$3,000(1.07)^10

This would give you the total value of the investment after 10 years.

Answer 2

$5,100 Dollars

Step-by-step explanation:

3,000 x .07 = 210

210 x 10 = 2100

3,000 + 2100 = 5100

You will have $5,100 dollars total value in 10 years!