Question

What is the future value of a $1,500 investment, earning 10 percent interest

per period, after two periods? (Round your answer to the nearest cent.)

Answer 1

The formula of compound interest is
A=p (1+r)^t
A future value?
P present value 1500
R interest rate 0.1
T two periods 2
A=1,500×(1+0.1)^(2)=> A=1,815

Answer 2

For 1 period
A=P(1+rt)
A=1500(1+(1*.1))
A=$1650
For 2 periods
A=$1800
The amount of interest earned each time is $150.