Question

If $4.500 is invested at 8% compounded annually, how much will this investment be worth in 22 years? Round your answer to two decimal places. Answeritow to enter your iantwer iopens in nev window)

Answer 1

Explanation:

The formula is A = P(1 + r/n)^nt

First, convert R as a percent to r as a decimal

r = R/100

r = 8/100

r = 0.08 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 4,500.00(1 + 0.08/1)(1)(22)

A = 4,500.00(1 + 0.08)(22)

A = $24,464.43

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $4,500.00 at a rate of 8% per year compounded 1 times per year over 22 years is $24,464.43.