can someone please help unit 8 lesson 9?financial literacy
Of course! I'll do my best to help you with Unit 8 Lesson 9 in financial literacy. Please provide me with specific details or questions you have about the lesson, so I can assist you more effectively.
chris invests the 15,000 in a retirement account with an annual interest rate of 3.4% find the final amount of investment after 27 years of interest is compounded quarterly round the answer to the nearest cent
To calculate the final amount of investment after 27 years with quarterly compounding, 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 (as a decimal)
n = number of times interest is compounded per year
t = number of years
Given:
P = $15,000
r = 3.4% = 0.034 (as a decimal)
n = 4 (quarterly compounding)
t = 27
Plugging the values into the formula:
A = 15000(1 + 0.034/4)^(4*27)
Calculating inside the parentheses:
A = 15000(1 + 0.0085)^(108)
A = 15000(1.0085)^(108)
Using a calculator or spreadsheet, we calculate:
A ≈ $42,377.33
Therefore, the final amount of the investment after 27 years with quarterly compounding is approximately $42,377.33.
Are you sure
I apologize for any confusion. Let's recalculate to ensure accuracy.
A = P(1 + r/n)^(nt)
A = 15000(1 + 0.034/4)^(4*27)
Inside the parentheses:
(1 + 0.034/4) = 1.0085
A = 15000 * (1.0085)^(108)
Calculating (1.0085)^(108):
(1.0085)^108 ≈ 2.144642
A = 15000 * 2.144642
A ≈ $32,169.62
I apologize for the mistake in the previous response. The correct answer is approximately $32,169.62 as the final amount of the investment after 27 years with quarterly compounding.