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21 votes
21 votes
A principal of $3100 is invested at 5.5% interest, compounded annually. How much will the investment be worth after 9 years? Round your answer to the nearest dollar.

User TocToc
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1 Answer

15 votes
15 votes

Given:


\begin{gathered} \text{Principal(P)}=\text{ \$3100 } \\ r=5.5\text{ \%} \\ n=9 \end{gathered}
Final\text{ amount=P(1+}(r)/(100))^n
\begin{gathered} Final\text{ amount after 9 years=}3100(1+(5.5)/(100))^9 \\ =3100(1.6191) \\ =\text{ \$50}19.21 \end{gathered}

Therefore, the investment be worth after 9 years is $5019.21

User Dobob
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