can someone please help unit 8 lesson 9?financial literacy
Of course! I'll do my best to help you with Unit 8 Lesson 9 in financial literacy. Please provide me with specific details or questions you have about the lesson, so I can assist you more effectively.
chris invests the 15,000 in a retirement account with an annual interest rate of 3.4% find the final amount of investment after 27 years of interest is compounded quarterly round the answer to the nearest cent
Are you sure
I apologize for any confusion. Let's recalculate to ensure accuracy.
A = P(1 + r/n)^(nt)
A = 15000(1 + 0.034/4)^(4*27)
Inside the parentheses:
(1 + 0.034/4) = 1.0085
A = 15000 * (1.0085)^(108)
Calculating (1.0085)^(108):
(1.0085)^108 ≈ 2.144642
A = 15000 * 2.144642
A ≈ $32,169.62
I apologize for the mistake in the previous response. The correct answer is approximately $32,169.62 as the final amount of the investment after 27 years with quarterly compounding.
So is that correct
Yes, I apologize for the earlier mistake. The correct final amount of the investment, after 27 years with quarterly compounding at an annual interest rate of 3.4%, is approximately $32,169.62.
To calculate the final amount of investment after 27 years with quarterly compounding, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
Given:
P = $15,000
r = 3.4% = 0.034 (as a decimal)
n = 4 (quarterly compounding)
t = 27
Plugging the values into the formula:
A = 15000(1 + 0.034/4)^(4*27)
Calculating inside the parentheses:
A = 15000(1 + 0.0085)^(108)
A = 15000(1.0085)^(108)
Using a calculator or spreadsheet, we calculate:
A ≈ $42,377.33
Therefore, the final amount of the investment after 27 years with quarterly compounding is approximately $42,377.33.