Answer
$6,314
Step-by-step explanation
Compound interest formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
• A: final amount, in dollars
,
• P: principal, in dollars
,
• r: interest rate, as a decimal
,
• n: number of times interest is applied per year
,
• t: time in years
In this case, the investment is compounded annually, that is, once per year (n = 1). Substituting P = $4,625, r = 0.0352 (=3.52/100), n = 1, and t = 9 years, we get:
[tex]\begin{gathered} A=4,625(1+\frac{0.0352}{1})^{1\cdot9} \\ A=4,625(1.0352)^9 \\ A=\text{ \$}6,314 \end{gathered}[/tex]
