Use the compound interest formula to find the future value A for the following values.

Question

Use the compound interest formula to find the future value A for the following values.

P=$1,500

i=0.046

n=27

A=$______ ​(Round to the nearest​ cent.)

Answer 1

the underlying formula that you want to use to solve this one is

A = P(1 + r)^n

for this scenario that means taking

A = 1500(1 + 0.046)^27

A = 1500(1.046)^27

A = 5051.81

meaning that the future value here is $5051.81

Answer 2

A = 1500(1 + 0.046)²⁷