Question

Shawn has a bank account with $4,625. He decides to invest the money at 3.52% interest,

compounded annually. How much will the investment be worth after 9 years? Round to
the nearest dollar.

Answer 1

Answer: The investment will be 6314 after 9 years.

Explanation:

Formula to calculate the accumulated amount in t years:

`A=P(1+r)^t`, whereP= principal amount, r= rate of interest ( in decimal)

Given: P = $4,625

r= 3.52% = 0.0352

t= 9 years

Then, the accumulated amount after 9 years would be:

`A=4625(1+0.0352)^9\\\\=4625(1.0352)^9\\\\=4625(1.36527)\approx6314`

Hence, the investment will be 6314 after 9 years.