Algebra 1 homework

Question

An investment account is gaining value at a rate of 3.15% per year. The account was valued at $130 in 2015. What will the account be valued at in 2025?

Enter the correct value in the box. Round to the nearest cent.

Answer 1

Hi,

We're looking at a compound interest question here. The formula for compound interest is A = P(1+r)^t . Where A is the total after adding interest to our principal amount, P is the initial amount, in this case $130, r is the interest rate or 3.15%, and t is time, in this case 10 because 2025-2015. After plugging in our values we get A = 130(1+.0315)¹⁰. We solve and get $177.27

Answer 2

This is a compound interest problem with annual compounding at an APY of 3.15% (r = 0.0315)

We're looking at a 10-yr span (2025 - 2015 = 10), so t = 10 The original investment (P) is $130.

A = P(1 + r)^t A = 130(1 + 0.0315)¹⁰ Don't forget to follow the order of operations rules (PEMDAS) when doing the calculation and round your answer to two decimal places as required..