Respuesta :
EXPLANATION:
We are given an investment of $15,000 invested for 13 years at an annual rate of 3.15%.
To calculate the Simple Interest on this investment, the formula given is;
[tex]I=PRT[/tex]Where the variables are;
[tex]\begin{gathered} P=15000 \\ R=3.15\% \\ T=13 \end{gathered}[/tex]We now have;
[tex]I=15000\times0.0315\times13[/tex][tex]I=6142.5[/tex]The value at the end of the investment period is now derived as;
[tex]A=P+I[/tex][tex]A=15000+6142.5[/tex][tex]A=21,142.5[/tex]To calculate value of this investment using the compound interest formula, we shall apply the formula which is;
[tex]A=P(1+r)^t[/tex]Given the same variables as earlier, we simply substitute and solve as shown below;
[tex]A=15000(1+0.0315)^{13}[/tex][tex]A=15000(1.0315)^{13}[/tex][tex]A=15000(1.49658028574)[/tex][tex]A=22448.7042861[/tex]We can round this to 2 decimal places and we'll have;
[tex]A=22,448.70[/tex]ANSWER:
Amount of the investment after 13 years will be $22,448.70
