A principal of 3400 is invested at 8 percent interest , compounded annually . How much will the investment be worth after 12 years. Round to the nearest dollar

Solution

Solution

Amount : 8561.78

Solution steps

Translate the problem into an equation:

A = 3400 (1 + \frac{0.08}{1})^{1 \cdot 12}

3400 (1 + \frac{0.08}{1})^{1 \cdot 12} = 8561.77839 \dots

Round to the nearest hundredth:

8561.78

Amount : 8561.78

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