Perry has an opportunity to put $12,000 into an investment with an APR of 5.6% compounded annually.
Use the number of years you got as an answer in the previous to find out how much Perry’s balance would be at the end of that time. Round to one decimal place.
12,000 (1.056)^n
To find out how much Perry's balance would be at the end of the given time period, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount/ balance
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
In this case, Perry has $12,000 to invest, the annual interest rate is 5.6% (or 0.056 as a decimal), and the interest is compounded annually (n = 1).
Let's assume you have already calculated the number of years based on a previous question. For example, if you found that Perry has invested for 5 years, we can plug these values into the formula:
A = 12,000(1 + 0.056/1)^(1*5)
Now, let's calculate the final balance:
A = 12,000(1 + 0.056)^(5)
A = 12,000(1.056)^(5)
Using a calculator, evaluate (1.056)^(5) and multiply it by 12,000. The result will give you Perry's balance at the end of the given time period. Round the answer to one decimal place as requested.