Question

A principal of  $3300  is invested at  6.75%  interest, compounded annually. How much will the investment be worth after  8  years? Use the calculator provided and round your answer to the nearest dollar.​

Answer 1

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 3300\\ r=rate\to 6.75\%\to \frac{6.75}{100}\dotfill &0.0675\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &8 \end{cases} \\\\\\ A=3300\left(1+\frac{0.0675}{1}\right)^{1\cdot 8}\implies A=3300(1.0675)^8\implies A\approx 5565$