Question

To calculate the future value of Kendra's investment, we can use the formula for compound interest:

Future Value = Principal * (1 + Rate)^Time

Given that the principal amount is $100,000, the interest rate is 15% (or 0.15), and the time period is 20 years, we can substitute the known values into the formula:

Future Value = $100,000 * (1 + 0.15)^20

Calculating this expression:

Future Value = $100,000 * (1.15)^20
Future Value ≈ $1,851,695.60

Therefore, Kendra's investment will be worth approximately $1,851,695.60 in 20 years (rounded to two decimal places).

Answer 1

[AI-generated answer — Bot GPT 3.5]

It's important to note that the interest rate should be converted to a decimal before applying the formula. In this case, 15% is converted to 0.15. The formula assumes that the interest is compounded annually. Other compounding frequencies, such as quarterly or monthly, may result in slightly different future values.