Answer:
4,218.75
Step-by-step explanation:
Lets say that P is your starting principal (spelled -pal and not -ple, because Your Money is Your Pal), r is the interest rate (expressed as a decimal), and Y is the number of years you invest. Then your future value will be:
P (1 + rY) (Simple Interest)
P (1 + r)Y (Annually Compounded Interest)
Note the two formulas give the same answer for one year. After that, compound interest takes off.
