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19 November, 19:25

What is the future value of a $1,500 investment, earning 10 percent interest

per period, after two periods? (Round your answer to the nearest cent.)

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Answers (2)
  1. 19 November, 21:22
    0
    For 1 period

    A=P (1+rt)

    A=1500 (1 + (1*.1))

    A=$1650

    For 2 periods

    A=$1800

    The amount of interest earned each time is $150.
  2. 19 November, 22:08
    0
    The formula of compound interest is

    A=p (1+r) ^t

    A future value?

    P present value 1500

    R interest rate 0.1

    T two periods 2

    A=1,500 * (1+0.1) ^ (2) = > A=1,815
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