Question 5 An investment of $45 earns 20% interest compounded annually for 3 years. How much is to worth? O $90.90 O $77.76 O $9.83 O $113.73

asked Apr 20, 2021 136k views

1 vote

Question 5

An investment of $45 earns 20% interest compounded annually for 3 years. How much is to worth?
O $90.90
O $77.76
O $9.83
O $113.73

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5 votes

Answer:

$77.76

Explanation:

The future value formula is useful:

FV = P(1 +r)^t

FV = $45(1.20^3) = $45·1.728 = $77.76

Ashokds answered Apr 26, 2021

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