Question

A principal of $1900 is invested at 8% interest compounded annually. How much will the investment be worth after 13 years?

Answer 1

To get the amount of the invested sum after 13 years, we will use the formula:

$\text{Amount}=P(1+\frac{r}{100})t$

where

$\begin{gathered} P=\text{ \ 1900} \\ r=8 \\ t=13 \end{gathered}$$\text{Amount}=1900(1+\frac{8}{100})^{13}$

$\begin{gathered} \text{Amount}=1900(1.08)^{13} \\ \text{Amount}=\text{ \ 5167.29} \end{gathered}$

The investment will be worth $5167.29 after 13 years