Given:
The principal, P = $3500.
The compounded interest annually, r =8.5 % =0.085.
Teh number of years, t=7.
Aim:
We need to find the worth of the principal after 7 years.
Explanation:
Consider the fomrula to find the worth of the pricipal.
[tex]A=P(1+r)^t[/tex]
Substitute P =3500, r =0.085, and t =7 in the formula.
[tex]A=3500(1+0.085)^7[/tex][tex]A=6195[/tex]
Final answer:
The worth of the principal after 7 years = $ 6195.
