Web Analytics
Answered

How much would $500 invested at 9% interest compounded annually be worth after 4 years? Round your answer to the nearest cent. Do not include units in your answer.

Verified Answer :

Cazeh

F=P(1+i)n
where F is the Future amount
P is the Present amount/Capital
i is the interest rate
n is the number of periods
-----------------------------
In this case you have the given as follows:
P = $500
i = 9%
n = 4 years
-----------------------------
Substituting the values to the formula you'll have:
F=500(1+0.09)4
F=705.79

syed514

Using the formula for simple interest you'll have:
F=P(1+i)n
where F is the Future amount
P is the Present amount/Capital
i is the interest rate
n is the number of periods
In this case you have the given as follows:
P = $500
i = 9%
n = 4 years

Substituting the values to the formula you'll have:
F=500(1+0.09)4
F=705.79

Related Questions