Asked by Jennifer McCray on May 19, 2024
Verified
An $1,100 investment earning 6.3% compounded annually grew to $4,483.92. What was the term of the investment?
Compounded Annually
Describes the calculation of interest on an investment whereby the interest earned each year is added to the principal sum, leading to interest being earned on interest from the subsequent year onwards.
- Calculate the time required for an investment to reach a specific value under compound interest.
Verified Answer
SR
Learning Objectives
- Calculate the time required for an investment to reach a specific value under compound interest.