a principal of $3400 is invested at 6.25% interest, compounded annually. How much will the investment be worth after 12 years?

Question

a principal of $3400  is invested at 6.25% interest, compounded annually. How much will the investment be worth after 12  years?

anonymous · Answer

3400 * (1.0625)^12.  Can't be bothered to calculate it myself.

anonymous · Answer

Sorry the formula was incorrect... here it is$$A=P \left( 1+\frac{r}{n} \right)^{nt}$$where A= the accumulated amount in the account
P=principle
r=interest rate (decimal)
n=number of compoundings per year
t=number of years

anonymous · Answer

In your case...$$A=3400\left( 1+.0625 \right)^{12}=7037.63$$Note n=1 (one compounding per year)