Answer: hope this helps
(a) 3%: $12,509.05
(b) 5%: $13,493.57
(c) 7%: $14,562.76
Explanation:
To calculate the future value of an investment compounded annually, you can use the formula:
FV = P(1 + r)^n
Where:
- (FV) is the future value of the investment
- (P) is the initial principal (the amount you placed in the account)
- (r) is the annual interest rate (expressed as a decimal)
- (n) is the number of years
Let's calculate the future values for each scenario:
(a) 3% interest rate:
FV = 11100(1 + 0.03)^4 \approx 11100(1.1255) approx 12509.05
After four years, with a 3% interest rate, you would have approximately $12,509.05.
(b) 5% interest rate:
FV = 11100(1 + 0.05)^4 approx 11100(1.21550625) approx 13493.57
After four years, with a 5% interest rate, you would have approximately $13,493.57.
(c) 7% interest rate:
\[FV = 11100(1 + 0.07)^4 approx 11100(1.3107961) approx 14562.76
After four years, with a 7% interest rate, you would have approximately $14,562.76.