Question
$1000 invested at an APR of 9% for 9 years. If interest is compounded annually, what is the amount of money after nine years?
Answers
Henry
P = Po(1+r)^n.
r = 0.09 = APR expressed as a decimal.
n = 1Comp./yr * 9yes = 9 Compounding periods.
Plug the above values into the given Eq
and solve for P.
Answer: P = $2171.89
r = 0.09 = APR expressed as a decimal.
n = 1Comp./yr * 9yes = 9 Compounding periods.
Plug the above values into the given Eq
and solve for P.
Answer: P = $2171.89