Question

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

Answer 1

$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)`