$15,000 at 15% compounded annually for 5 years.

A. $28,500.00

B. $30,170.36

C. $17,250.00

D. $26,250.45

Answer

The total amount of $15,000 at 15% compounded annually for 5 years will be $30,170.36, so option (B) is correct.

What is compound interest?

Compound interest is applicable when there is a change in the principal amount after the given period.

The rate at which compound interest accrues depends on the frequency of compounding.

For instance, if you offer someone $500 at a rate of 10% annually, $500 will be considered your principal sum. After a year, the **interest **will be $50, making the principal **amount $550. Moving forward, the interest will be $550 rather than $500.

Given

Principle amount = $15000

Rate of interest = 15%

The time period T = 5 years.

Compound interest formula

A = P [1+R/100] T

A = 15000 [1+15/100] 5

A = $30,170.36 hence, the total amount after 5 year will be $30,170.36.