A principal of 2100 is invested at 4% interest, compounded annually. How much will the investment be worth after 8 years? Use the calculator provided and round your answer to the nearest dollar.

Solution

Solution

Amount : 2874

Solution steps

Translate the problem into an equation:

A = 2100 (1 + \frac{0.04}{1})^{1 \cdot 8}

2100 (1 + \frac{0.04}{1})^{1 \cdot 8} = 2873.99500 \dots

Round to the nearest hundredth:

2874

Amount : 2874

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