QQuestionMathematics
QuestionMathematics
$15,000 at 15% compounded annually for 5 years.
A. $28,500.00
B. $30,170.36
C. $17,250.00
D. $26,250.45
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Answer
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Step 1:I'll solve this compound interest problem step by step using the compound interest formula.
Step 2:: Identify the Compound Interest Formula
- $$n$$ = Number of years
The compound interest formula is: Where:
Step 3:: Plug in the Known Values
- $$n = 5$$ years
- r = 0.15 (15% converted to decimal)
Step 4:: Calculate the Final Amount
A = 15,000(1 + 0.15)^{5}
A = 15,000(1.15)^{5}
Step 5:: Compute the Calculation
A = 30,171
A = 15,000 \times 2.0114
Step 6:: Round to Nearest Cent
A = \$30,170.36
Final Answer
The investment of $15,000 at 15% compounded annually will grow to $30,170.36 after 5 years.
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