Question

If a person invests $190 at 8% annual interest, find the approximate value of the investment at the end of 10 years.

Answer 1

Answer: 342

Explanation:

This is a SIMPLE INTEREST question:

SI = prt

SI = 190 x 0.08 x 10

SI = 152

Amount = 190 + 152 = 342

Answer 2

$420

Explanation:

This the problem of compound interest

If any amount P is invested at rate of r% per year then its value after n years is given by

amount =
`p( 1+ r/100)^n`

______________________________

Given

p = $190

r =8%

n = 10 year then

`amount = p( 1+ r/100)^n\\=> amount = 190( 1+ 8/100)^10\\=> amount = 190( 108/100)^10\\=> amount = 410.20`

Thus, value of the investment at the end of 10 years is $420.