ksmsparkles97
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Consider the following investment. (Round your answers to the nearest cent.)

$3,000 at 6% compounded annually for 15 years

(a) FIND the future value of the given amount.

(b) INTERPRET the future value of the given amount.

After 15 years, the investment is worth $?

Respuesta :

sqdancefan

(a) 6% of the value of the investment is added each year. This means the value of the investment is multiplied by 1.06 each year. After 15 multiplications, the value is ...

... $3000×1.06¹⁵ ≈ $7189.67

(b) The interpretation of this result is ...

... After 15 years, the investment is worth $7189.67.

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