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A principal of $4400 is invested at 8.25% interest, compounded annually. how much will the investment be worth after 15 year's?

1 Answer

2 votes
A = $ 9,845.00

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 8.25%/100 = 0.0825 per year,
then, solving our equation

A = 4400(1 + (0.0825 × 15)) = 9845
A = $ 9,845.00

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 4,400.00
at a rate of 8.25% per year
for 15 years is $ 9,845.00.
User Fralle
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