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Answer: Riley will earn 2707 in 15 years
Explanation:
The formula for calculating compound interest is expressed as
A = P(1 + r/n)^nt
where
A is the final amount after t years
A is the principal or initial amount
r is the interest rate
n is the number of compounding periods in a year
t is the time
From the information given,
P = 1000
r = 6.75% = 6.75/100 = 0.0675
t = 15
n = 2 because it was compounded twice in a year
By substituting these values into the formula,
A = 1000(1 + 0.0675/2)^2 * 15
A = 1000(1.03375)^30
A = 2707
Riley will earn 2707 in 15 years