Answer to Question #280663 in Financial Math for og3718

Question

9000 dollars is placed in an account with an annual interest rate of 8%. How much will be in the account after 17 years, to the nearest cent?

Answer 1

$R=P(1+i)^n$ , where P - initial sum, i - interest rate, n - number of payments

Since the rate is annual, then there will be 17 payments in 17 years, so n =17. i is given 0.08 and P is given 9000, so

$R=9000*(1+0.08)^{17}=9000*1.08^{17}\approx33000.16$ dollars