Question

If a person invests $290 at 6% annual interest, find the approximate value of the investment at the end of 15 years

Answer 1

Answer:

A = $ 695.00

Step-by-step explanation:

given,

person invests money  = $290

interest rate = 6 %

time for which the investment is done = 15 years.

using compound interest formula

$A =P \times (1+\dfrac{r}{100})^t$

$A= 290 \times (1+\dfrac{6}{100})^{15}$

A = $ 695.00

Hence, the approximate value after investment for 15 years comes out to be

A = $ 695.00

Answer 2

In this question , we have to use the formula of simple interest and find the interest first.

$I = P R T$

P is the principal which is $290.

R is the rate of interest which is 6 % or 0.06

And T is the time period which is 15 years .

Substituting the values of P ,R and T, we will get

$I = 290* 0.06*15 = 261$

And amount after 15 years = Prinipal + interest

That is

$Amount = 290+261= 551$