Question

Use the compound interest formula to compute the balance in the following account after the stated period of​ time, assuming interest is compounded annually. ​$9000 invested at an APR of 2.8​% for 21 years.

Answer 1

The amount after 21 years would be $16073

Explanation:

Given:

Principal, P = $9000

Time, t = 21 years

Rate, r = 2.8%

Amount, A = ?

We know:

$A = P(1+ \frac{r}{100})^n$

On substituting the value, we get

$A = 9000(1+\frac{2.8}{100} )^2^1\\\\A = 16073$

Therefore, the amount after 21 years would be $16073