QuestionMay 26, 2025

Shawn has a bank account with 4,625 He decides to invest the money at 3.52% interest,compounded annually.How much will the investment be worth after 9 years?Round to the nearest dollar. Type your numerical answer below.

Shawn has a bank account with 4,625 He decides to invest the money at 3.52% interest,compounded annually.How much will the investment be worth after 9 years?Round to the nearest dollar. Type your numerical answer below.
Shawn has a bank account with 4,625 He decides to invest the money at
3.52%  interest,compounded annually.How much will the investment be worth
after 9 years?Round to the nearest dollar.
Type your numerical answer below.

Solution
4.1(203 votes)

Answer

\6,267 Explanation 1. Identify the formula for compound interest Use the formula A = P(1 + r)^n, where ( A ) is the amount after ( n ) years, ( P ) is the principal amount, ( r ) is the annual interest rate, and ( n ) is the number of years. 2. Substitute values into the formula ( P = 4625 ), ( r = 0.0352 ), ( n = 9 ). Calculate \( A = 4625(1 + 0.0352)^9 \). 3. Compute the result Calculate \( (1 + 0.0352)^9 \) and multiply by 4625.

Explanation

1. Identify the formula for compound interest<br /> Use the formula $A = P(1 + r)^n$, where ( A ) is the amount after ( n ) years, ( P ) is the principal amount, ( r ) is the annual interest rate, and ( n ) is the number of years.<br />2. Substitute values into the formula<br /> ( P = 4625 ), ( r = 0.0352 ), ( n = 9 ). Calculate \( A = 4625(1 + 0.0352)^9 \).<br />3. Compute the result<br /> Calculate \( (1 + 0.0352)^9 \) and multiply by 4625.
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