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You invest $55 at 10% compounded annually for 3 years. How much will your investment be worth in 3 years?

User Maikzen
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1 Answer

2 votes

Answer:

$73.21

Step-by-step explanation:


\boxed{\sf A = P(1 + (r)/(100))^(t)}

where A is final value, P is initial value, r is rate of interest, t is time (years)

Solve for Final Value:


\rightarrow \sf A = 55(1 + (10)/(100))^(3)


\rightarrow \sf A = 55(1.1)^(3)


\rightarrow \sf A = 73.205


\rightarrow \sf 73.21 \ \ (rounded \ to \ nearest \ hundreth)

User ChrisJ
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