Q43 Please help me as soon as possible

Question

asked Apr 20, 2024 145k views

2 Answers

Megapctr · Answer 1 · 2024-04-25T06:24:43+0000

Answer:

$15860.85.

Explanation:

The formula to compute the current value of an Investment is:

$\sf A=P(1+r)^n$

where

So,

Let's substitute in the values we have:

Principal amount (P) = $5,000

Annual rate of return (r) = 0.08 (8%)

Number of years (n) = 15 years

We can now calculate the value of the investment after 15 years using the formula:

$\sf A = P(1 + r)^n$

$\sf A = 5000(1 + 0.08)^(15)$

$\sf A = 5000 \cdot 1.08^(15)$

$\sf A = 5000 \cdot 3.172169114$

$\sf A = 15860.84557$

$\sf A = 15860.85 \textsf{in 2 d.p.}$

Therefore, the value of the investment after 15 years will be approximately $15860.85.