Question

A principal of $4700 is invested at 6% interest compounded annually. How much will the investment be worth after 12 years Use the calculator provided and round your answer to the nearest dollar.

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$4700\\ r=rate\to 6\%\to (6)/(100)\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\to &1\\ t=years\to &12 \end{cases} \\\\\\ A=4700\left(1+(0.06)/(1)\right)^(1\cdot 12)\implies A=4700(1+0.06)^(12)`