Question

If $9,000 is invested in an account for 15 years. Find the value of the investment at the end of 15 years if the interest is:

(a) 5% simple interest: $


(b) 5% compounded annually: $


Round your answers to the nearest cent.

Answer 1

a.

`9000 * 1.05 = 9450.00`

b.

`9000(( {1 + .05)}^(15) - 1) = 9710.35 \\ 9000 + 97130.35 = 18710.35`