Question

An initial investment is $13230

It grows at a rate of 6% a year
Interest is compounded yearly
What is the value after 18 years (nearest penny)

Answer 1

The Amount of investment after 18 years is $37762.39

Explanation:

Given as :

The principal investment = $13230

The rate of interest compounded yearly = 6%

The Time period = 18 years

From compounded method

Amount = Principal ×
`(1+(Rate)/(100))^(Time)`

Or, Amount = $13230 ×
`(1+(6)/(100))^(18)`

Or, Amount = $13230 ×
`(1.06)^(18)`

Or, Amount = $13230 × 2.8543

∴ Amount = $37762.389

Hence The Amount of investment after 18 years is $37762.39 Answer