If you invest $47 000 for five years at 9.7% p.a.(interest paid annually and then reinvested),what is the value of your investment at the end of the five-year period?
A)$81 910.13
B)$74 667.39
C)$56 560.22
D)$62 046.56

Question

Quizplus · Accepted Answer

The value of the investment at the end of the five-year period can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount ($47,000), r is the annual interest rate (9.7% or 0.097), and n is the time the money is invested for (5 years). Plugging in the values: A = 47000(1 + 0.097)^5 = $74,667.39.

If You Invest $47 000 for Five Years at 9