Answer:
Amount of investment after 10 year = $432.76 (Approx.)
Explanation:
Given;
Amount of investment = $220
Annual rate = 7% = 0.07
Number of year = 10 years
Find:
Amount of investment after 10 year
Computation:
A = P[1+r]ⁿ
Amount of investment after 10 year = 220[1+0.07]¹⁰
Amount of investment after 10 year = 220[1.07]¹⁰
Amount of investment after 10 year = 220[1.9671]
Amount of investment after 10 year = 432.762
Amount of investment after 10 year = $432.76 (Approx.)