Question
9000 dollars is placed in an account with an annual interest rate of 8%. How much will be in the account after 17 years, to the nearest cent?
Answers
GPT 3.5
To calculate the future value of an account with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested/borrowed for
Given:
P = $9000
r = 8% = 0.08 (as a decimal)
n = 1 (compounded annually)
t = 17 years
Using the formula:
A = 9000(1 + 0.08/1)^(1*17)
A = 9000(1 + 0.08)^17
A = 9000(1.08)^17
A ≈ $29,080.86
Therefore, approximately $29,080.86 will be in the account after 17 years.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested/borrowed for
Given:
P = $9000
r = 8% = 0.08 (as a decimal)
n = 1 (compounded annually)
t = 17 years
Using the formula:
A = 9000(1 + 0.08/1)^(1*17)
A = 9000(1 + 0.08)^17
A = 9000(1.08)^17
A ≈ $29,080.86
Therefore, approximately $29,080.86 will be in the account after 17 years.