https://file.aiquickdraw.com/mathbot/file/1729754480699u3h17f9h.jpg

The problem asks how much will be in the account after 7 years, given an investment of $3,000 at 9% interest compounded annually. To solve this, we use the compound interest formula:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount in the account after interest.
- $P$ is the principal (initial investment), which is $3,000.
- $r$ is the annual interest rate, 9% or 0.09.
- $n$ is the number of times the interest is compounded per year (since it's compounded annually, $n = 1$).
- $t$ is the time in years, which is 7 years.

Substitute the values:

\[
A = 3000 \left(1 + \frac{0.09}{1}\right)^{1 \times 7}
\]

\[
A = 3000 (1.09)^7
\]

Now, calculate:

\[
A \approx 3000 \times 1.82804 = 5484.12
\]

Thus, the amount in the account after 7 years is approximately **$5,484.12**.

Would you like more details or have any questions?

---

Here are 5 related questions you might explore:
1. What if the interest was compounded monthly instead of annually?
2. How much interest did Rashid earn over the 7 years?
3. What would be the total amount after 10 years at the same interest rate?
4. What is the effect of doubling the interest rate on the final amount?
5. How would the amount change if the principal was $4,000 instead of $3,000?

**Tip**: Compound interest grows faster the more frequently it's compounded. Always check how often compounding happens!

Rashid invested $3000 at 9% compounded annually. How much will be in the account after 7 years? Round to the nearest cent.

Learn how to calculate the compound interest for an investment of $3000 at an annual interest rate of 9%, compounded annually over 7 years. This example demonstrates the use of the compound interest formula and the exponential growth of investments. Suitable for high school students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation