QuestionMay 23, 2025

(Related to Checkpoint 5.2) (Calculating future value) To what amount will 5,100 invested for 9 years at 9 percent compounded annually accumulate? (Round your answer to the nearest cent.) 5,100 invested for 9 years at 9 percent compounded an annually will accumulate to square

(Related to Checkpoint 5.2) (Calculating future value) To what amount will 5,100 invested for 9 years at 9 percent compounded annually accumulate? (Round your answer to the nearest cent.) 5,100 invested for 9 years at 9 percent compounded an annually will accumulate to square
(Related to Checkpoint 5.2) (Calculating future value) To what amount will 5,100 invested for 9 years at 9 percent compounded
annually accumulate?
(Round your answer to the nearest cent.)
 5,100 invested for 9 years at 9 percent compounded an annually will accumulate to square

Solution
4.0(295 votes)

Answer

\ 12,068.56 Explanation 1. Identify the Formula Use the future value formula for compound interest: **FV = PV \times (1 + r)^n**. 2. Assign Values PV = 5100, r = 0.09, n = 9. 3. Calculate Future Value Substitute the values into the formula: FV = 5100 \times (1 + 0.09)^9. 4. Compute the Result Calculate FV = 5100 \times (1.09)^9 \approx 5100 \times 2.367364. 5. Final Calculation FV \approx 12068.56.

Explanation

1. Identify the Formula<br /> Use the future value formula for compound interest: **$FV = PV \times (1 + r)^n$**.<br /><br />2. Assign Values<br /> $PV = 5100$, $r = 0.09$, $n = 9$.<br /><br />3. Calculate Future Value<br /> Substitute the values into the formula: $FV = 5100 \times (1 + 0.09)^9$.<br /><br />4. Compute the Result<br /> Calculate $FV = 5100 \times (1.09)^9 \approx 5100 \times 2.367364$.<br /><br />5. Final Calculation<br /> $FV \approx 12068.56$.
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