Question

A principal of \$2200 Is Invested at 6% Interest, compounded annually. How much will the Investment be worth after 9 years?Use the calculator provided and round your answer to the nearest dollar.

Answer 1

Given:

`\begin{gathered} Principal(P)=\text{ \$2200} \\ rate\text{ of interest(r)=}6\text{ \%} \\ \text{Number of years(n)=9} \end{gathered}`

Required:

How much will the investment be worth after 9 years.

Formula:

`\text{Amount(A)}=P(1+r)^n`

Step-by-step explanation:

Rate of interest is given in percentage we have to convert that as direct value to substitute in the formula.

`\begin{gathered} r=6\text{ \%} \\ r=(6)/(100) \\ r=0.06 \end{gathered}`

By substitute all values in the formula,we get

`\begin{gathered} A=2200(1+0.06)^9 \\ A=2200(1.06)^9 \\ A=2200(1.6895) \\ A=\text{ 3}716.9 \\ A=\text{ \$}3717 \end{gathered}`

Final Answer:

Investment worth after 9 years be $3717