SOLUTION: What is the final balance for the investment? $1500 for 3 years at 10% compounded annually

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Question 606235: What is the final balance for the investment? $1500 for 3 years at 10% compounded annually
Answer by mathie123(224) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for compound interest is :
FV=PV%281%2Bi%29%5En
where FV represents the future value, PV represents the present value (how much you put into the account right now), i represents the interest rate per period and n represents the number of periods (in our case years).
So we have PV=1500
n=3
and i=0.1 (which is the same as 10%)
Substituting this into our formula we have:
FV=1500%281.1%29%5E3

You need to solve for FV (I will let you do the rest- let me know if you are unsure about anything:)