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A principal of $3900 is invested at 7.5% interest compounded annually how much will the investment be worth after 9 years

Sagot :

[tex]~~~~~~ \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 &\$3900\\ r=rate\to 7.5\%\to \frac{7.5}{100}\dotfill &0.075\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &9 \end{cases} \\\\\\ A=3900\left(1+\frac{0.075}{1}\right)^{1\cdot 9}\implies A=3900(1.075)^9\implies A\approx 7477.23[/tex]

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