a principal of $4900 is invested at 3.25% interest, compounded annually. how much will the investment be…

Explanation:

Step1: Identify the 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, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years the money is invested for.

Step2: Convert the interest rate to decimal

Given $r = 3.25%=\frac{3.25}{100}=0.0325$.

Step3: Substitute the values into the formula

We have $P = 4900$, $r = 0.0325$, and $t = 11$. Substitute these values into the formula $A=P(1 + r)^t$: [ \begin{align*} A&=4900\times(1 + 0.0325)^{11}\ &=4900\times(1.0325)^{11} \end{align*} ]

Step4: Calculate the value

Using a calculator, $(1.0325)^{11}\approx1.42937$. Then $A = 4900\times1.42937=6903.913$.

Answer:

$6904$