Chris Spear invested $11,515 today in a fund that earns 10% compounded annually.

Question

Chris Spear invested $11,515 today in a fund that earns 10% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10% annual interest compounded semiannually?(Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use tables in text.)

Investment at 10% annual interest $ Investment at 10% annual interest compounded semiannually $ Chris Spear invested $11,515 today in a fund that earns 10% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10% annual interest compounded semiannually?(Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use tables in text.)

Explanation / Answer

Investment at 10% annual interest = 11515 *(1+0.1)^3 = 15326.46

b)Investment at 10% annual interest compounded semiannually = 11515*(1+0.1/2)^6 = 15431.20

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