Suppose that on January 1, 1899, one of your ancestors invested $41 compounded annually at 4.5%. If this money were left to you, how much would you have had on January 1, 2002?
1) $192
2) $3,817
3) $190
4) $3,989***
Please help me i believe it is 4 but i need clarifacation and need to know if this is correct
wow 117 people saw this and did not know the anwser 😫 its ok ill just fail algabra.
To find out the correct answer, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A is the final amount
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, the principal amount (P) is $41, the annual interest rate (r) is 4.5% (or 0.045 as a decimal), the interest is compounded annually (n = 1), and the time period (t) is 103 years (from 1899 to 2002).
Now we can plug these values into the formula to calculate the final amount (A):
A = $41(1 + 0.045/1)^(1*103)
A = $41(1 + 0.045)^(103)
A ≈ $41(1.045)^103
A ≈ $41(7.295)
A ≈ $299.395
So, the correct answer is not among the options provided. You would have had approximately $299.395 on January 1, 2002.
103 yrs
x = 41 (1 + .045)^103