find the future value, using the future value formula and a calculator. (round your answer to the nearest…

find the future value, using the future value formula and a calculator. (round your answer to the nearest cent.) $175 at 21.25% compounded annually for 27 years

find the future value, using the future value formula and a calculator. (round your answer to the nearest cent.) $175 at 21.25% compounded annually for 27 years

Answer

Explanation:

Step1: Identify the formula

The future value formula for compound interest is (A = P(1 + r)^t), where (P) is the principal amount, (r) is the annual interest rate (in decimal form), and (t) is the number of years.

Step2: Convert the percentage to decimal

Given (r=21.25%=0.2125), (P = 175), and (t = 27).

Step3: Substitute the values into the formula

(A=175\times(1 + 0.2125)^{27}) First, calculate ((1 + 0.2125)=1.2125) Then, find ((1.2125)^{27}\approx101.479) (using a calculator)

Step4: Calculate the future value

(A=175\times101.479 = 17768.825)

Answer:

(17768.83)