Question

if a person invests $220 at 7% annual interest, find the approximate value of the investment at the end of 10 years

Answer 1

Answer:

Amount of investment after 10 year = $432.76 (Approx.)

Step-by-step explanation:

Given;

Amount of investment = $220

Annual rate = 7% = 0.07

Number of year = 10 years

Find:

Amount of investment after 10 year

Computation:

A = P[1+r]ⁿ

Amount of investment after 10 year = 220[1+0.07]¹⁰

Amount of investment after 10 year = 220[1.07]¹⁰

Amount of investment after 10 year = 220[1.9671]

Amount of investment after 10 year = 432.762

Amount of investment after 10 year = $432.76 (Approx.)