Problema Solution

Simon invests $19,500, at 9% interest, compounded annually for 11 years. Calculate the compound amount for his investment.

Answer provided by our tutors

P = $19,500 the principle or present value


r = 0.09 or 9% the annual rate


t = 11 years the number of years or the number of compounding periods


A = the future value or compound amount


A = P(1 + r)^t


A = 19500(1 + 0.09)^11


A = $50,318.315


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