Question

1. lukes investment of $10000 earns interest at 2% per year, compounded annually over 4 years.

answer the following questions by repeated multiplication.
6a what is the value of the investment after 4 years?
write your answer to the nearest cent.
value = 10 824.20 dollars
value = enter your next step here dollars

Explanation:

Step1: Define growth factor

Annual growth factor: $1 + 0.02 = 1.02$

Step2: Year 1 value calculation

$10000 \times 1.02 = 10200$

Step3: Year 2 value calculation

$10200 \times 1.02 = 10404$

Step4: Year 3 value calculation

$10404 \times 1.02 = 10612.08$

Step5: Year 4 value calculation

$10612.08 \times 1.02 = 10824.3216$

Step6: Round to nearest cent

Round $10824.3216$ to 2 decimals: $10824.32$

Answer:

10824.32 dollars