Question

A principal of $3800 is invested at 3.75% Interest, compounded annually. How much will the investment be worth after 6 years?

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

Answer 1

Explanation:

Simple interest formula: i = prt

i = interest

p = principle amount

r = rate

t = time (in years)

Substitute the numbers given in the problem.

i = $3800x0.0375x6

i = $855

In order to find the total investment, add the interest ($855) to the principle amount ($8500)

$855 + $8500 = $9355

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