Question

This question is from a MATH extra credit assignment, so unless I accidentally clicked on a subject other than maths... This question is also not from a test. Please help me if you can. Thank you if you do :)

Answer 1

$6,314

Explanation

Compound interest formula

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

where

• A: final amount, in dollars

,

• P: principal, in dollars

,

• r: interest rate, as a decimal

,

• n: number of times interest is applied per year

,

• t: time in years

In this case, the investment is compounded annually, that is, once per year (n = 1). Substituting P = $4,625, r = 0.0352 (=3.52/100), n = 1, and t = 9 years, we get:

`\begin{gathered} A=4,625(1+(0.0352)/(1))^(1\cdot9) \\ A=4,625(1.0352)^9 \\ A=\text{ \$}6,314 \end{gathered}`