A principal of $2900is invested at 3.25% interest, compounded annually. How much will the investment be worth after 9years? Use the calculator provided and round your answer to the nearest dollar.

Answers

Answer 1

Given:

Principal = $2900

Rate of interest = 3.25% compounded annually.

Time = 9 years.

To find:

The amount of investment after 9 years.

Solution:

The formula for amount is:

[tex]A=P\left(1+\dfrac{r}{n}\right){nt}[/tex]

Where, P is principal, r is rate of interest, n number of times interest compounded in an year and t is the number of years.

Substitute P=2900, r=0.0325, n=1 and t=9.

[tex]A=2900\left(1+\dfrac{0.0325}{1}\right)^{1\times 9}[/tex]

[tex]A=2900\left(1+0.0325\right)^{9}[/tex]

[tex]A=2900\left(1.0325\right)^{9}[/tex]

Using calculator, we get

[tex]A=3867.306[/tex]

[tex]A\approx 3867[/tex]

Therefore, the worth of the investment after 9 years will be $3867.


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:::::

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:::::

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