Answer:
To calculate the future value of an investment compounded annually, we can use the formula:
Future Value = Principal Amount * (1 + Interest Rate)^(Number of Periods)
In this case, the principal amount is $3200, the interest rate is 2.4% (or 0.024), and the investment is compounded annually for 4 years.
Plugging these values into the formula, we get:
Future Value = $3200 * (1 + 0.024)^4
Calculating the exponent first:
(1 + 0.024)^4 = 1.024^4 = 1.09985925696
Multiplying the principal amount by the exponent:
Future Value = $3200 * 1.09985925696
Future Value ≈ $3,519.47
Therefore, the investment will be worth approximately $3,519.47 after 4 years when compounded annually at a rate of 2.4%.
Explanation: