If you increase a number by 4.5%, then you're adding 4.5% of that number to 100% of that number. So essentially you just multiply 14187.13 by 104.5%, or 1.045 to find the answer, which is 14,825.55.

7 0

3 years ago

how much would $150 invested at 8% interest compounded anually be worth after 13 years? A(t)=P(1+r/n)^

PIT_PIT [208]

$\bf ~~~~~~ \textit{Compound Interest Earned Amount}
\\\\
A=P\left(1+\frac{r}{n}\right)^{nt}
\quad 
\begin{cases}
A=\textit{accumulated amount}\\
P=\textit{original amount deposited}\to &\$150\\
r=rate\to 8\%\to \frac{8}{100}\to &0.08\\
n=
\begin{array}{llll}
\textit{times it compounds per year}\\
\textit{annually, thus once}
\end{array}\to &1\\
t=years\to &13
\end{cases}
\\\\\\
A=150\left(1+\frac{0.08}{1}\right)^{1\cdot 13}\implies A=150(1.08)^{13}\implies A\approx 407.9435589$