Question

A principal of $2000 is invested at 7.75% interest, compounded annually. How much will the investment be worth after 14 years?

Use the calculator provided and round your answer to the nearest dollar.

Answer 1

Yearly compounding: 7.75% $5,686.85

Quarterly compounding: 7.978% $5,857.78

Monthly compounding: 8.031% $5,898.27

Daily compounding: 8.057% $5,918.20

Explanation:

multiply yearly by 14