Question

A principal of $3100 is invested at 5.5% interest, compounded annually. How much will the investment be worth after 9 years? Round your answer to the nearest dollar.

Answer 1

Given:

`\begin{gathered} \text{Principal(P)}=\text{ \$3100 } \\ r=5.5\text{ \%} \\ n=9 \end{gathered}`
`Final\text{ amount=P(1+}(r)/(100))^n`
`\begin{gathered} Final\text{ amount after 9 years=}3100(1+(5.5)/(100))^9 \\ =3100(1.6191) \\ =\text{ \$50}19.21 \end{gathered}`

Therefore, the investment be worth after 9 years is $5019.21