Answer:
[tex]\textsf{Future amount}=\boxed{30}\;(1+\boxed{0.20}\;)\;^{\boxed{3}}[/tex]
The future amount of an initial investment of $30 at an annual simple interest rate of 20% for the period of 3 years is $51.84.
Step-by-step explanation:
"Future amount" is the total value or amount of an investment or sum of money at a specific point in the future.
The future amount formula refers to a mathematical equation used to calculate the future value of an investment or sum of money, taking into account factors such as interest rate and time period.
The given future amount formula is:
[tex]\boxed{\textsf{Future amount}=I(1+r)^t}[/tex]
where:
- I is the initial amount.
- r is the interest rate (as a decimal).
- t is the number of time periods that will have passed.
Given:
Substitute the given values into the future amount formula:
[tex]\textsf{Future amount}=\boxed{30}\;(1+\boxed{0.20}\;)\;^{\boxed{3}}[/tex]
Calculate:
[tex]\begin{aligned}\sf Future\;amount&=30(1+0.20)^3\\&=30(1.2)^3\\&=30(1.728)\\&=51.84\end{aligned}[/tex]
Therefore, the future amount of an initial investment of $30 at an annual simple interest rate of 20% for the period of 3 years is $51.84.
