Question

Use the compound interest formula to compute the balance in the following account after the stated period of​ time, assuming interest is compounded annually. ​$9000 invested at an APR of 2.8​% for 21 years.

Answer 1

The amount after 21 years would be $16073

Step-by-step explanation:

Given:

Principal, P = $9000

Time, t = 21 years

Rate, r = 2.8%

Amount, A = ?

We know:

`A = P(1+ (r)/(100))^n`

On substituting the value, we get

`A = 9000(1+(2.8)/(100) )^2^1\\\\A = 16073`

Therefore, the amount after 21 years would be $16073