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A principal of $1500 is invested at 8.5% interest, compounded annually. How much will the investment be worth after 14 years?

Use the calculator provided and round your answer to the nearest dollar.

User Manderson
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4 votes
Answer:

the investment will be worth approximately $4,498 after 14 years (rounded to the nearest dollar)

Step-by-step-explanation:

Sure, to calculate the future value of the investment, we can use the formula:

FV = P(1 + r/n)^(n*t)

Where:

FV = Future Value
P = Principal (initial investment)
r = Annual interest rate
n = Number of times the interest is compounded per year
t = Number of years

In this case, P = $1500, r = 8.5%, n = 1 (compounded annually), and t = 14 years.

Plugging in these values to the formula, we get:

FV = 1500(1 + 0.085/1)^(1*14)
FV = 1500(1.085)^14
FV = $4,497.60

Therefore, the investment will be worth approximately $4,498 after 14 years (rounded to the nearest dollar).
User Prabu R
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