Question

A principal of $2400 is invested at 8.75% 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

A = $ value after 9 years
P = principal (initial deposit)
r = annual % rate
n = # of times interest compounds per year
t = # of years the money is invested

Formula:
A = P (1 + r/n)^(nt)

A= $8400(1+ 0.0875/1) ^(1*9)
A= 8400(1.0875)^9
A= 8400(2.1274697352)
A= $17,870 investment after 9 years

Hope this helps! :)