Calculating investment

Business & Finance
Tutor: None Selected Time limit: 1 Day

To what amount will the following investment accumulate? 

$7,130 invested today for 19 years at 6%, compounded annually. Which formula would I work this with? I'm confused.

Aug 26th, 2015

Thank you for the opportunity to help you with your question!

 principal=$7,130

time=19 years

 Rate=6%

Using the compound interest formula, we have that
P = 7130, r = 46/100 = 0.06, , t = 19. Therefore, n=1. 

n means the number of times which is compounded 

A=P(1+r/n)nt

7130(1+0.06)19

=$21,572.52

 find the difference to find the amount accumulated 

21,572.52-7130

=14,442

 THANK YOU FOR THE OPPORTUNITY


Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 26th, 2015

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