Question

8300 dollars is placed in an account with an annual interest rate of 6.5%. How much will be in the account after 14 years, to the nearest cent?

Answer 1

(About) 20043.46 after 14 years

Step-by-step explanation:

~ Let us apply a compound interest formula not through substituting values, but through a similar way of following this formula ~

1. First let us assign the values:

interest ⇒ 6.5 percent ( % ), principle number - start value ⇒ $ 8300, time ⇒ 14 years

2. Now let us convert interest ⇒ decimal form: 0.065

3. Add 1 to this value 0.065 ⇒ 1 + 0.065 = 1.065

4. Now let us take 1.065 exponentially to the power of itself 14 times, or in other words to the power of time ( 14 years ): 1.065^ 14 = 2.414874185.......

5. Multiply this infinite number by the principle number P, or most commonly known as the start value: 2.414874185....... * 8300 ⇒

(About) 20043.46 after 14 years