A principal of $2100 is invested at 4% interest, compounded annually. How much will the investment be worth after 15 years?

Question

 A principal of $2100
is invested at 4%
interest, compounded annually. How much will the investment be worth after 15
years?

 

Answer 1

you want to use the compound interest formula to set this one up

A = P(1 + r/n)^(nt)

for this set of values that means taking

A = 2100(1 + 0.04/1)^(1*15)

A = 2100(1.04)^15

A = 3782.38

meaning that after 15 years the investment will be worth approximately $3782.38

Answer 2

A = 2100(1 + 0.04/1)¹⁽¹⁵⁾

A = 3781.98