To calculate Annie's final amount after 25 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Final amount
P = Principal amount (initial investment)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years
Given:
P = $7000
r = 3.3% = 0.033 (converted to decimal)
n = 4 (compounded quarterly)
t = 25 years
Plugging in the values into the formula:
A = 7000(1 + 0.033/4)^(4*25)
Simplifying:
A = 7000(1 + 0.00825)^(100)
A = 7000(1.00825)^100
Calculating using a calculator or spreadsheet:
A ≈ 7000 * 2.182888813
A ≈ $15,280.21
Therefore, Annie's final amount after 25 years of investment is approximately $15,280.21.
Any invest $7000 into a retirement account with a compound interest rate of 3.3% compounded quarterly what is Annie’s final amount after 25 years of investment around the answer to nearest cent
1 answer
1 answer