To calculate the total amount of Chris's investment after 27 years using the formula for compound interest, you can use the formula:
\[ A = P(1 + r)^t \]
where:
- \( A \) is the total amount after time \( t \),
- \( P \) is the principal amount (initial investment),
- \( r \) is the annual interest rate (as a decimal),
- \( t \) is the number of years.
Given:
- \( P = 15,000 \) (the initial amount),
- \( r = 3.4% = 0.034 \) (the annual interest rate in decimal),
- \( t = 27 \) (the number of years).
Now, plug in the values into the formula:
\[ A = 15000(1 + 0.034)^{27} \]
Calculating \( 1 + 0.034 \):
\[ 1 + 0.034 = 1.034 \]
Now raise this to the power of 27:
\[ 1.034^{27} \approx 2.463 \]
Now substitute back into the formula:
\[ A \approx 15000 \times 2.463 \]
Calculating the final amount:
\[ A \approx 36945.00 \]
Therefore, the total amount of the investment after 27 years is approximately $36,945.00.