Answered

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Suppose you invested $4,500 and it grew by 4% every year for 30 years. How much would this investment be worth after 30 years?

Suppose You Invested 4500 And It Grew By 4 Every Year For 30 Years How Much Would This Investment Be Worth After 30 Years class=

Sagot :

Answer:

a) 14,595.29

Explanation:

We'll use the below compound interest formula to solve the given problem;

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where A = future amount

P = initial amount = $4500

r = interest rate in decimal = 4/100 = 0.04

n = number of compounding periods = 1

t = time period = 30 years

Let's go ahead and substitute the above values into our formula and solve for A;

[tex]\begin{gathered} A=4500(1+\frac{0.04}{1})^{1\times30} \\ A=4500(3.24339751003) \\ A=14,595.29 \end{gathered}[/tex]

We can see from the above that the investment would be worth $14,595.29 after 30 years.

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