Answer:
12500
Step-by-step explanation:
4.5 × 48=216.
12500 Plus 216= 12,716
The value of the invested money becomes $103393.20 after 4 years if the interest rate is 4.5% and compounded annually.
It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
[tex]\rm A = P(1+r)^t[/tex]
Where A = Final amount
P = Principal amount
r = annual rate of interest
t = How long the money is deposited or borrowed (in years)
We have in the question:
p = $12,500
r = 4.5% ⇒ 0.045
t = 4 years ⇒ 4×12 ⇒ 48 months
Put the above values in the formula, we get;
[tex]\rm A = 12500(1+0.045)^4^8[/tex]
A = 12500×8.27145
A = $103393.20
Thus, the value of the invested money becomes $103393.20 after 4 years if the interest rate is 4.5% and compounded annually.
Learn more about the compound interest here:
brainly.com/question/26457073
