Question

Hello could you please help me with question number 7?

Answer 1

The amount A on an account after t years, when a principal P is invested with an interest rate r compounded monthly, is given by the formula:

`A=P(1+(r)/(12))^(12* t)`

The principal that Theo invested was $6600, with an interest rate of 4.5%. Replace P=6600, r=4.5/100 and t=4 to find the value of his investment after 4 years:

`A=6600*(1+(0.045)/(12))^(12*4)=7898.97\ldots`

Therefore, the value of his investment after 4 years is $7898.97