a principal of $\\$4900$ is invested at $9\\%$ interest, compounded annually. how much will the investment…

a principal of $\\$4900$ is invested at $9\\%$ interest, compounded annually. how much will the investment be worth after $10$ years?\n\nuse the calculator provided and round your answer to the nearest dollar.

a principal of $\\$4900$ is invested at $9\\%$ interest, compounded annually. how much will the investment be worth after $10$ years?\n\nuse the calculator provided and round your answer to the nearest dollar.

Answer

Explanation:

Step1: Identify the compound interest formula

$$A = P(1 + r)^n$$

Step2: Assign values to the variables

$$P = 4900, r = 0.09, n = 10$$

Step3: Substitute values into the formula

$$A = 4900(1 + 0.09)^{10}$$

Step4: Calculate the base raised to the power

$$1.09^{10} \approx 2.36736367$$

Step5: Multiply by the principal amount

$$A = 4900 \times 2.36736367 \approx 11600.08$$

Step6: Round to the nearest dollar

$$A \approx 11600$$

Answer:

$11600