Multiple choice

Brooke invested \$30,000 in company X. The interest earned on the account is 15% which is compounded annually. Which of the following expressions represents the amount (in $) p years from now?

  1. (30,000)p

  2. 3,000(1.15)p

  3. 30,000(1.15)p

  4. 30,000(0.15)p
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The formula for annual compound interest is A = P(1 + r)^t. Here, P = 30000, r = 0.15, and t = p, resulting in 30000(1.15)^p.

AI explanation

The standard compound interest formula states that the future amount equals the principal multiplied by (1 + rate) raised to the number of years. Substituting the given values, the amount equals 30,000 multiplied by (1 + 0.15) raised to the power of p. This simplifies to the expression 30,000(1.15)p.

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