Question

If+you+invest+$100+at+an+interest+rate+of+15%,+how+much+will+you+have+at+the+end+of+eight+years?

Answer 1

Answer:

$305.9022863 or $305.90 (rounded to 2 decimal places)

Step-by-step explanation:

It is a compound interest, meaning an interest accumulates on an initial amount every period. The formula  

A= P(1+R)^n

A= the total amount P=Initial amount       R= rate  n=time period

P=$100 R=15% or 0.15(decimal)  n=8 (years)  

A= 100 (1.15)^8

A= 100(3.059022863)

A=305.9022863