Question

A principal of $2900 is invested at 4.25% interest, compounded annually. How much will the investment be worth after 7 years?

Answer 1

Let S = Sum after 13 years

So = amount invested

t = time in years

i = annual interest rate = .0325

The S = So(1+i)t = $2,200(1.0325)13 = $3,334.21