Answer:
A = $1,837.56
Step-by-step explanation:
A = P(1 + r/n)^nt
Where,
Future value, A = ?
Principal, p = $1,500
Interest rate, r = 7%
Time, t = 3 years
Number of periods, n = 1 (annually)
convert r as a percent to r as a decimal
r = 7/100
r = 0.07 rate per year
A = P(1 + r/n)^nt
A = 1,500(1 + 0.07/1)^1*3
A = 1,500(1 + 0.07)^3
= 1,500(1.07)^3
= 1500(1.225043)
A = $1,837.5645
Approximately,
A = $1,837.56
