Answer:
$11,611.69
Step-by-step explanation:
Compound Interest Formula
[tex]\large \text{$ \sf A=P\left(1+\frac{r}{n}\right)^{nt} $}[/tex]
where:
- A = final amount
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = $6,000
- r = 4.5% = 0.045
- n = 1 (annually)
- t = 15 years
Substitute the given values into the formula and solve for A:
[tex]\implies \sf A=6000\left(1+\frac{0.045}{1}\right)^{(1 \times 15)}[/tex]
[tex]\implies \sf A=6000(1.045)^{15}[/tex]
[tex]\implies \sf A=11611.69466...[/tex]
Therefore, the value of the investment after 15 years will be $11,611.69 to the nearest cent.
