Given:
Principal = $2900
Rate of interest = 3.25% compounded annually.
Time = 9 years.
To find:
The amount of investment after 9 years.
Solution:
The formula for amount is:
[tex]A=P\left(1+\dfrac{r}{n}\right){nt}[/tex]
Where, P is principal, r is rate of interest, n number of times interest compounded in an year and t is the number of years.
Substitute P=2900, r=0.0325, n=1 and t=9.
[tex]A=2900\left(1+\dfrac{0.0325}{1}\right)^{1\times 9}[/tex]
[tex]A=2900\left(1+0.0325\right)^{9}[/tex]
[tex]A=2900\left(1.0325\right)^{9}[/tex]
Using calculator, we get
[tex]A=3867.306[/tex]
[tex]A\approx 3867[/tex]
Therefore, the worth of the investment after 9 years will be $3867.
