Question

How much would $100 invested at 8% intrest compounded annually be worth after 15 years? round your answer to the nearest cent. do not include units in your answer a(t) = P(1 + r/n)^nt

Answer 1

Our P = 100, r = .08, n = 1 (annually means once a year), and t = 15.  Filling in accordingly, we have $A(t)=100(1+ \frac{.08}{1})^{(1)(15)}$.  Simplifying a bit gives us  $A(t)=100(1+.08)^{15}$  and  $A(t)=100(1.08)^{15}$.  Raising that number inside the parenthesis to the 15th power gives us  $A(t)=100(3.172169114)$.  Multiplying to finish means that A(t) = $317.22