Answer: $9,898.23
Step-by-step explanation:
Compound Interest formula is: [tex]A=P(1+r)^t[/tex] where
- A is the Accrued amount (total earned)
- P is the Principal (amount initially invested)
- r is the interest Rate (convert percent to a decimal)
- t is the Time (number of years)
It is given that; A = 11,260 r = 3.375% (0.03275) t = 4
11,260 = P(1 + 0.03275)⁴
11,260 = P
(1 + 0.03275)⁴
9898.23 = P
Bailey invested $9,898.23 four years ago at an interest rate of 3.275% and it has a value of $11,260 today.
