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What is the value of the investment after 10 years if $2300 is invested in an account with an annual interest rate of 5.2% compounded annually?

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Final answer:

The value of the investment after 10 years, given an initial investment of $2300 with an annual interest rate of 5.2% compounded annually, is approximately $3768.24.

Step-by-step explanation:

To find the value of the investment after 10 years, we can use the formula for compound interest:

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

Where:

  • A is the final amount
  • P is the principal amount (initial investment)
  • r is the annual interest rate (in decimal form)
  • n is the number of times interest is compounded per year
  • t is the time in years

Plugging in the values from the question, we have:

A = 2300(1+0.052/1)^(1*10)

A = 2300(1.052)^10

A = 2300(1.63862)

A ≈ $3768.24

User Jerry Dodge
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