To calculate the amount of money Sam's investment would be worth at the end of the period, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial investment) ($400 in this case)
r = the annual interest rate (15% or 0.15)
n = the number of times interest is compounded per year (assuming annually, so n = 1)
t = the time the money is invested for, in years (3 years in this case)
Plugging in the values:
A = 400(1 + 0.15/1)^(1*3)
A = 400(1 + 0.15)^3
A = 400(1.15)^3
A ≈ 400(1.520875)
A ≈ 608.35
So, the investment would be worth approximately $608.35 at the end of the three-year period.
