Question

An initial investment is $13230
It grows at a rate of 6% a year
Interest is compounded yearly
What is the value after 18 years (nearest penny)

Answer 1

Answer:

The Amount of investment after 18 years is $37762.39

Step-by-step explanation:

Given as :

The principal investment = $13230

The rate of interest compounded yearly =  6%

The Time period = 18 years

From compounded method

Amount = Principal × $(1+\frac{Rate}{100})^{Time}$

Or, Amount = $13230 × $(1+\frac{6}{100})^{18}$

Or, Amount = $13230 × $(1.06)^{18}$

Or, Amount = $13230 × 2.8543

∴   Amount = $37762.389

Hence The Amount of investment after 18 years is $37762.39   Answer