Question

A principal of $4000 is invested at 6.5% interest, compounded annually. How much will the investment be worth after 12 years?

Answer 1

HI!!

Answer 2

\[4000*(1.065)^{12}\] and a calculator

Answer 3

Hey! How did you get 1.065?

Answer 4

i got this
http://www.wolframalpha.com/input/?i=4000%281.065%29%5E12

Answer 5

to increase a number by \(6.5\%\) is the same as finding \(100\%+6.5\%=106.5\%=1.065\)times that number

Answer 6

Oh! I see so the answer would be 8516.. that's what I got?

Answer 7

yes

Answer 8

clear enough right?

Answer 9

Yes thank you!

Answer 10

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