Annual interest rates can be determined by the following formula:
[tex]A = P(1+r)^{y}[/tex]
A represents the total amount after y years. P represents the initial amount invested. r represents the interest rate percentage translated into a decimal. y represents the total amount of years that will have passed.
Plug in your values.
[tex]A = 250(1+.103)^{40}[/tex]
[tex]A = 12617.127[/tex]
Rounded to the nearest penny, the total amount raised after 40 years is $12617.13.
