Question

Mr. Bert deposted $5.000 en an envestment Actunt with an anmaal terest rate of 3.75 How much will res investment be worth in 15 years

Answer 1

To calculate the future value of Mr. Bert's investment, we can use the formula for compound interest:

\[
FV = P(1 + r)^t
\]

Where:
- \( FV \) = future value of the investment
- \( P \) = principal amount (initial investment)
- \( r \) = annual interest rate (in decimal)
- \( t \) = number of years the money is invested

For Mr. Bert's investment:
- \( P = 5000 \)
- \( r = 3.75\% = 0.0375 \)
- \( t = 15 \)

Now, we can plug in the values:

\[
FV = 5000(1 + 0.0375)^{15}
\]

Calculating it step-by-step:

1. Calculate \( (1 + 0.0375)^{15} \):
\[
(1 + 0.0375)^{15} \approx 1.7137
\]

2. Multiply by the principal:
\[
FV \approx 5000 \times 1.7137 \approx 8568.50
\]

So, after 15 years, Mr. Bert's investment will be worth approximately **$8,568.50**.