Question

A principal of $4300 is invested at 3% interest, compounded annually. How much will the

investment be worth after 9 years?
Use the calculator provided and round your answer to the nearest dollar.

Answer 1

9514 1404 393

Answer:

$5611

Explanation:

We can't make use of your calculator, but we know the formula.

__

The future value of the investment is ...

FV = P(1 +r)^t

FV = $4300(1.03^9) ≈ $5611

The investment will be worth about $5611 after 9 years.