After 2 years, an investment of $1500 compounded annually at interest rate r will yield $1500 ( 1 + r ) ^ { 2 }$ . Find this product.
A) $r ^ { 2 } + 2 r + 1500$
B) $1500 r ^ { 2 } + 3000 r + 1500$
C) $1500 r ^ { 2 } + 1500 r + 1500$
D) $1500 r ^ { 2 } + 1500$
E) $3000 r ^ { 2 } + 1500 r + 1500$

Question

Quizplus · Accepted Answer

The formula given is $1500 (1 + r)^2$, which can be expanded as $1500(1+2r+r^2)$. Simplifying this expression, we get $1500r^2+3000r+1500$, which is the same as answer choice B.

After 2 Years, an Investment of $1500 Compounded Annually at Interest