Laui recieved $16,500 from his grandparents on hus birthday
Principal amount = $16,500
He invested it ina a Roth that earn 8.25% annual report that is compounde annually.
rate of interest = 8.25%
We need to calculate the amount accured in 15 years
Time = 15 years
Expression for the compound interest is :
[tex]\text{ Amount = Principal(}1+\frac{rate\text{ of interst}}{100})^t[/tex]
Substitute the value and simplify :
[tex]\begin{gathered} \text{ Amount =16500(1+}\frac{8.25}{100})^{15} \\ \text{ Amount =16500(}\frac{100+8.25}{100})^{15} \\ \text{ Amount =16500(}\frac{108.25}{100})^{15} \\ \text{Amount =}54187.92 \end{gathered}[/tex]
The amount will be $54187.92
For the profit : 54187.92 - 16500
Profit amount = 37687.92
Profit percentage = Profit AMount / Cost Price x 100
[tex]\begin{gathered} \text{ Profit Percentage=}\frac{37687.92}{54187.92}\times100 \\ \text{Profit Percentage=}69.55\text{ \%} \end{gathered}[/tex]
