Mybagismissing
Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

An investment of $4000 earns 2% interest compounded annually. What will be the value of the investment in 7 years?

Sagot :

tamiyamcclain596
$4594

a=p(1+r)^t
a=final number
p=principal balance (initial)**without interest**
r=interest rate
t=the amount of time
p=$4000
t= 7yrs
r=2%=0.02
we need to turn 2% into a decimal, to do that you divide 2 by 100 which is 0.02
now we rewrite the equation-
a=4000(1+0.02)^7
a=4000*1.1486
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.