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John has a bank account with $7,362. He decides to invest the money at 4.85% interest, compounded annually. How much will the investment be worth after 9 years? Round to the nearest dollar.

Respuesta :

The interest compounded after 9 years is $11,271.22

Data;

  • Principal = $7,362
  • Rate = 4.85% = 0.0485
  • N = 1
  • time = 9

Compound Interest

To solve this problem, we have to find the interest compounded at annual interval here;

[tex]C.I = P(1+ \frac{r}{n})^n^t[/tex]

Let's substitute the values into the equation and solve.

[tex]c.i = p(1+\frac{r}{n})^n^t\\ c.i = 7362*(1 + \frac{0.0485}{1})^1^*^9\\c.i = 7362 * 1.531\\c.i= 11,271.22[/tex]

The interest compounded after 9 years is $11,271.22

Learn more on compound interest here;

https://brainly.com/question/1570054

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