the investment after 3 years will be worth $73.21
Explanation:Amount invested = Principal
P = $55
n = number of time scompounded = annually
n = 1
rate = r = 10% = 0.1
FV = future value after 3 years
Using compound interest formula:
[tex]FV\text{ = P(1 +}\frac{r}{n})^{nt}[/tex]substituting the values in the formula:
[tex]\begin{gathered} FV\text{ = }55(1\text{ + }\frac{0.1}{1})^{1\times3} \\ FV\text{ = }55(1\text{ + }0.1)^3 \\ FV\text{ = }55(1.1)^3 \\ FV\text{ = 55(}1.331) \\ FV\text{ = 73.205 approx i}mately\text{ to nearest cents is }73.21 \end{gathered}[/tex]Hence, the investment after 3 years will be worth $73.21
