You want to deposit $15,000 in a bank at an interest rate of 7 percent per year. what is the future value of this money after three years?

To answer the problem above, I assume that the interest is compounded. Having said that, the equation for the future worth (F) of the present investment (P) is,
                                     F = P x (1 + i)^n 
where i is interest rate and n is the number of years. Substituting,
                             F = ($15,000) x (1 + 0.07)^3 = $18,375.645
Thus, the answer to the question is approximately $18,375.65.

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