Question is in description

Question

A principal of $3100 is invested at
8.75% interest, compounded annually. How much will the investment be worth after
14 years?

Answer 1

Compound interest:  A = p(1+r/n)^nt

A = future amount

p = principal investment = 3100

r = interest rate as a decimal = .0875

n = number of times compounded per year = 1

t = time in years = 14

 

To do this we just plug the known values into the formula

 

A = 3100(1 + .0875/1)¹⁽¹⁴⁾ = 3100(1.0875)¹⁴ = $3371.29

Answer 2

=3100(1.0875)¹⁴

so put that into your calculator!