Question

A principal of 4600$ is invested at 9% interest, compounded annually. How much will the investment be worth after 12 years?

Answer 1

Step 1: find out how much 9% is in decimal

9%=0.09
Step 2: Multiply to find how he pays annually(per year)

4600x0.09=414
Step 3: Multiply by 12, since the principal pays for 12 years

414x12=4,968

ANSWER:4,968
I hope this helps, not sure if this is right

Answer 2

$12,938.26

Explanation:

The equation for solving this is:

A = P(1+r/n)^nt

P = 4600

^ initial amount/principal

R = 0.09

^ rate (9% converted to a decimal)

n = 1

^ how often it is compounded (yearly, so it is 1)

t = 12

^ how long the investment is for (in years)

A = 4600(1.09)^12

A = 12,938.26

^ rounded to the nearest hundred, because when dealing with money it has to be rounded to the nearest hundred. Un-rounded the answer is 12938.2579962.

The investment will be worth $12,938.26 after 12 years.