Anne invested 7,000 into retirement account with a compound interest rate of 3.3%
To calculate the future value of Anne's investment, we can use the compound interest formula:
Future Value = Principal * (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods * Time)
In this case, the principal is $7,000, the interest rate is 3.3% (or 0.033 in decimal form), and the compounding period can be assumed to be yearly.
Let's assume Anne plans to keep the investment for 10 years:
Future Value = 7000 * (1 + 0.033/1)^(1 * 10)
Future Value = 7000 * (1 + 0.033)^10
Future Value = 7000 * (1.033)^10
Future Value ≈ $9,364.29
Therefore, the future value of Anne's investment after 10 years with a compound interest rate of 3.3% would be approximately $9,364.29.