Answer:
$2,753.79
Step-by-step explanation:
Compound Interest Formula
[tex]\large \text{$ \sf A=P\left(1+\frac{r}{n}\right)^{nt} $}[/tex]
where:
- A = final amount
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = $2,000
- r = 3.25% = 0.0325
- n = 1
- t = 10
Substitute the given values into the formula and solve for A:
[tex]\implies \sf A=2000\left(1+\frac{0.0325}{1}\right)^{(1 \times 10)}[/tex]
[tex]\implies \sf A=2000(1.0325)^{10}[/tex]
[tex]\implies \sf A=2753.788608...[/tex]
Therefore, the value of the investment after 10 years will be $2,753.79 to the nearest cent.
