Question

A principal of $4300 is invested at 3% interest, compounded annually. How much will the investment be worth after 5 years?

Use the calculator provided and round your answer to the nearest dollar.

Answer 1

You would have 4945 dollars in 5 years.

Explanation:

First we look for what 3% of 4300 is

After we find it we have 129 dollars

Every year we gain 129 dollars for 5 years

129 · 5 = 645

Now we add : 4300 + 645 = 4945 dollars after 5 years