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chegg future value you have ​$1,000 to invest. if you put the money into an account earning 8​% interest compounded​ annually, how much money will you have in 15 ​years? how much money will you have in 15 years if the account pays 8​% simple​ interest?

Respuesta :

ayune

After 15 years, the future value of your investment is $3,172.17 if it is a compound interest and $2,200 if it is a simple interest.

The formula for the future value of compound interest is:

FV = P (1 + r)ⁿ

Where:

P = present value or initial balance

r = annual interest rate

n = number of years

Parameters given from the problem:

P =  ​$1,000

r =  8​% = 0.08

n = 15

Hence,

FV = 1000 (1 + 0.08)¹⁵

FV = 3,172.17

The formula for the future value of simple interest is:

FV = P (1 + r.n)

Hence,

FV = 1000 (1 + 0.08 × 15)

FV = 2,200

You will have $3,172.17 if the account pays  8​% compound​ interest and you will have $2,200 if the account pays  8​% simple​ interest.

Learn more about future value here:

https://brainly.com/question/27979326

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