Appreciation (Algebra)

Question

An investment of $1500 grows at a rate of 2.8%, compounded annually. The expression 1500(1.028)10 represents the value of the investment after 10 years. Evaluate the expression to determine the value of the investment after 10 years. Round your answer to two decimal places, and write a word answer including units.

Answer 1

A(t) = $1500·(1.028)^t where A(t) is the appreciated value of your $1500 investment after t years.

At t = 10 years:

A(10) = $1500·(1.028)¹⁰ = $_____.__?

Use your calculator to compute the answer. Word answer:

After 10 years, a $1500 initial investment will grow to $(fill in the value for A(10) you computed above) when invested at 2.8% interest compounded annually.