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If $3200 is invested at a rate of 2.4% that is compounded annually, how much will it be worth after 4 years?

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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:

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