What is the future value of $700 when r=9.5% and n=15?

The future value (FV) of an investment is calculated using the formula:

\[
FV = P \times (1 + r)^n
\]

Where:
- $ P $ is the initial principal (here $ P = 700 $),
- $ r $ is the interest rate (here $ r = 9.5\% = 0.095 $),
- $ n $ is the number of periods (here $ n = 15 $).

Substituting the values into the formula:

\[
FV = 700 \times (1 + 0.095)^{15}
\]

Let me calculate that for you.The future value of $700 after 15 years at an interest rate of 9.5% is approximately **$2,730.93**.

Would you like more details or have any questions on this? Here are 5 related questions you might find interesting:

1. What is the formula for future value when compounded monthly?
2. How does the interest rate impact future value over different time periods?
3. How would the future value change if the interest was compounded annually instead of being a simple interest rate?
4. What would the present value of $2,730.93 be if discounted back 15 years?
5. How does continuous compounding affect the future value compared to standard compounding?

**Tip:** Small changes in the interest rate or the number of periods can have a significant impact on the future value of an investment.

Discover how to calculate the future value of $700 invested at an interest rate of 9.5% over 15 years. Using the future value formula FV = P * (1 + r)^n, this solution illustrates key concepts in compound interest and exponential growth. Suitable for students in Grades 10-12.

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