Please Help...
You buy a commemorative coin for $25. The value of the coin increases 3.25% per year. How much will the coin be worth in 15 years? Round to the nearest cent.
what is 25(1.0325)^15 ?
387.187
no,,,,
25(1.0325)^15
= 25(1.61566..
=40.39
To calculate the worth of the coin after 15 years, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (the worth of the coin after 15 years)
P = the initial amount (the price you paid for the coin)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year (assuming it's compounded annually)
t = the number of years
In this case, the initial amount (P) is $25, the annual interest rate (r) is 3.25% expressed as 0.0325, the number of times compounded per year (n) is 1 (assuming annually), and the number of years (t) is 15.
Calculating the worth of the coin after 15 years using the formula:
A = $25(1 + 0.0325/1)^(1*15)
A = $25(1 + 0.0325)^15
A = $25(1.0325)^15
A ≈ $25(1.5780)
A ≈ $39.45
Therefore, the coin will be worth approximately $39.45 after 15 years.