Juanita invests $3,500, at 8% interest, compounded annually for 4 years?
To find the final amount of Juanita's investment, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = the annual interest rate (expressed as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, Juanita invests $3,500 at an interest rate of 8% (or 0.08) compounded annually for 4 years.
Using the formula, we can calculate the final amount:
A = 3,500 (1 + 0.08/1)^(1*4)
A = 3,500 (1.08)^4
A = 3,500 * 1.3605
A ≈ $4,761.75
Therefore, after 4 years, Juanita's investment will be approximately $4,761.75.