Question

(Future value) To what amount will $ 4800 invested for 8 years at 9 percent compounded annually accumulate? $4800 invested for 8 years at 9 percent compounded annually will accumulate to $ _____ (Round to the nearest cent.)

Answer 1

A =P(1+r/n)nt
A =	Future value of the investment
P=	the principal investment amount (the initial deposit or loan amount)
r =	the annual interest rate (decimal)
n =	the number of times that interest is compounded per year
t =	the number of years the money is invested or borrowed for
A	=	?
P	=	4,800
r	=	9.0%	or	0.09
n	=	1	Per Year
t	=	8	Years
Total Compounding period	=	8	Times
A	=	P	(	1	+	r	/	n	)nt
A	=	$           4,800	(	1	+	0.090	/	1	) 1 x 8
A	=	$           4,800	(	1	+	0.090	/	1	) 8
A	=	$           4,800	(	1	+	0.0900		) 8
A	=	$           4,800	(	1.0900		) 8
A	=	$           4,800	*	1.9926
A	=	$      9,564.30
Answer = $ 9,564.30