Final answer:
To calculate the value of the investment after 5 years with compound interest, use the formula A = P(1 + r/n)^(nt) where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. Plugging in the values, the investment will be worth approximately $942 after 5 years.
Step-by-step explanation:
To calculate the value of the investment after 5 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, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years. In this case, P is the set amount of money, r is 8.43%, n is 1 (since the interest is compounded annually), and t is 5. Plugging in the values, we get A = P(1 + r/n)^(nt) = P(1 + 0.0843/1)^(1*5) = P(1 + 0.0843)^5.
Using a calculator, we find that the value of the investment after 5 years is approximately $942. Therefore, the correct answer is C) It will be worth approximately $942.