math help you buy a commemorative coin for $25 the value of the cpin increases 3.25% per year how much will the coin be worth in 15 years

Answer 1

Using compound interest we have the formula

FV = PV(1 + i)^t

(where FV = future value, PV = present value, i = interest rate, t = time)

Since the interest rate is an annual rate and they are asking for the value in 15 years, we don't have to worry about compounding the interest rate quarterly/monthly for example.

The initial value is the PV, which is $25

i = 3.25%

t = 15

Hence, plugging in these values:

FV = 25(1 + 0.0325)^15

=> FV = 40.39