Question 710722
If I put $250 in an account that earns 7.5%, how much will there be in the account at the end of 15 years?
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Note: When you post investment problems you should indicate
if the investment is made at simple interest or at compound interest rules.
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Using Simple interest forms:
A(t) = P(1 + rt)
A(15) = 250(1+0.075*15) = $531.25
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Using interest forms with yearly compounding:
A(t) = P(1 + (r/n))^(nt)
A(15) = 250(1+(0.075/1))^15 = $739.72
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Cheers,
Stan H.
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