Problema Solution

principal of

$2900

is invested at

8.75%

interest, compounded annually. How much will the investment be worth after

9

years?

Answer provided by our tutors

P = $2,900 the principle


i = 8.25% or 0.0825


t = 9 years


A = the future value


A = P(1 + i)^t


A = 2900(1 + 0.0825)^9

........


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........

A = $5,919.01


After 9 years the investment will be $5,919.01 worth.