A principal of $1900 is invested at 8% interest compounded annually. How much will the investment be worth after 13 years?

Question

asked Sep 21, 2023 87.3k views

1 Answer

Bilal BBB · Answer 1 · 2023-09-25T11:53:45+0000

To get the amount of the invested sum after 13 years, we will use the formula:

$\text{Amount}=P(1+(r)/(100))t$

where

$\begin{gathered} P=\text{ \$1900} \\ r=8 \\ t=13 \end{gathered}$
$\text{Amount}=1900(1+(8)/(100))^(13)$

$\begin{gathered} \text{Amount}=1900(1.08)^(13) \\ \text{Amount}=\text{ \$5167.29} \end{gathered}$

The investment will be worth $5167.29 after 13 years