Question

A principal of $2900 is invested at 6% interest, compounded annually. How much will the investment be worth after 11 years?

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

Answer 1

$5,505

Explanation:

Compound interest formula :

• A = P (1 + r/n)^(nt)

Solving after substituting the given values :

• A = (2,900)(1 + 0.06/1)¹¹
• A = (2,900)(1.06)¹¹
• A = (2,900)(1.89829856)
• A = $5,505 (nearest dollar)