a principal of $1900 is invested at 8.75% int...
a principal of $1900 is invested at 8.75% 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
# Explanation:
## Step1: Identify compound - interest formula
The compound - interest formula is $A = P(1 + r)^t$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (in decimal form), and $t$ is the number of years the money is invested for.
## Step2: Convert the percentage to decimal
Given $r = 8.75\%=0.0875$, $P = 1900$, and $t = 11$.
## Step3: Substitute values into the formula
$A=1900\times(1 + 0.0875)^{11}$.
First, calculate $(1 + 0.0875)^{11}$. Using a calculator, $(1 + 0.0875)^{11}\approx2.5897$.
Then, $A = 1900\times2.5897$.
$A\approx4920.43$.
## Step4: Round to the nearest dollar
Rounding $4920.43$ to the nearest dollar gives $4920$.
# Answer:
$4920$