A principal of $2700 is invested at 6.25% interest, compounded annually. How much will the investment be worth after 13 years? Use the calculator provided and round your answer to the nearest dollar.
$

$5938

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Compounded Interest Rate Formula:

P is principle amountr is raten is compounded ratet is time

Step-by-step explanation:

Step 1: Define

Identify variables

P = 2700

r = 6.25% = 0.0625

n = 1

t = 13

Step 2: Find Interest

Substitute in variables [Compounded Interest Rate Formula]:                     [Exponents] Multiply:                                                                                         (Parenthesis) Divide:                                                                                        (Parenthesis) Add:                                                                                            Evaluate exponents:                                                                                         Multiply: