Answer:
[tex]\$100,879.39[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=20\ years\\ P=\$18,000\\ r=9\%=9/100=0.09\\n=1[/tex]
substitute in the formula above
[tex]A=18,000(1+\frac{0.09}{1})^{1*20}[/tex]
[tex]A=18,000(1.09)^{20}[/tex]
[tex]A=\$100,879.39[/tex]
