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5 votes
An initial investment is $14275.

It grows at a rate of 6% a year.
Interest is compounded yearly.
What is the value after 18 years? Round your answer to the nearest
penny.

User Brig Ader
by
8.3k points

1 Answer

1 vote

Answer: $34,828.59

Explanation:

We can use the formula for compound interest to solve this problem:

A = P(1 + r)^t

where:

P = the principal (in this case, $14,275)

r = the annual interest rate (6%, or 0.06 as a decimal)

t = the number of years (18)

Plugging in the values we know, we get:

A = $14,275(1 + 0.06)^18

A = $14,275(1.06)^18

A = $34,828.59 (rounded to the nearest penny)

Therefore, the value of the investment after 18 years, rounded to the nearest penny, is $34,828.59

User Manojkanth
by
8.0k points