Question

The formula to compute the current value of an investment is A = P (1 + r)n, where A is the value of the investment; P is the amount invested; r is the annual rate of return expressed as a decimal; and n is the number of years the amount is invested. If a woman invests $5,000 and the annual rate of return is 8 %, what is the value of the investment after 15 years? A. $2,000 B. $5,400 C. $10,882 D. $15,861 E. $21,499

Answer 1

Answer:  

$15860.5

Step-by-step explanation:

given data

principal= $5000

rate= 8%= 0.08

time =15years

We know that the expression for the final amount is

A=P(1+r)^t

substituting we have

A = 5000(1 + {0.08)^15

A=5000(1.08)^15

A=5000*3.1721

A= 15860.5

$15860.5