Problem Page A principal of $2100 is invested at 7.75% interest, compounded annually. How much will the investment be worth after 12 years?

After 12 years the investment will be worth $5145.

Step-by-step explanation:

The formula used for compounded interest is:

A = P (1+r/n) ^nt

where,

A = future value

P = Principal Amount

r = interest rate

n = no of times interest is compounded

t = time

In the question given:

A=?

P = $2100

r = 7.75% or 0.0775

n = 1

t = 12

A = 2100 * (1+0.0775/1) ^1*12

A = 2100 * (1+0.0775) ^12

A = 2100 * (1.0775) ^12

A = 2100 * 2.45

A = 5145

So, after 12 years the investment will be worth $5145.