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.