Question

A principal of $3300 is invested at 8.5% interest, compounded anually. How much will the investment be worth after 11 years? Round your answer to the nearest dollar. Please help..

Answer 1

`\boxed{\$8378}`

Explanation:

The formula for compound interest is:

A = P(1 + r)ⁿ

Data:

P = 3300

APR = 8.5 %

t = 11 yr

Calculations:

n = 11 × 12 = 132

r = 0.085/12 = 0.007 083

A = 3300(1 + 0.007 083)¹³²

= 3300 × 1.007 083¹³²

= 3300 × 2.5539

= 8378

`\text{The investment will be worth }\boxed{\mathbf{\$8378}}`