If you invest $75,000 at an interest rate of 5.2%, what will be the total amount available in 11 years?

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Multiple Choice

If you invest $75,000 at an interest rate of 5.2%, what will be the total amount available in 11 years?

To calculate the total amount available after 11 years when $75,000 is invested at an interest rate of 5.2%, the future value of the investment can be determined 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 (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of years the money is invested or borrowed. In this case: - \( P = 75,000 \) - \( r = 5.2\% = 0.052 \) - \( n = 11 \) Plugging the values into the formula: \[ A = 75,000(1 + 0.052)^{11} \] First, calculate \( (1 + 0.052) \): \[ 1 + 0.052 = 1.052 \] Next, raise this result to the power of 11: \[ 1.052^{11} \approx 1.643619 \] Now, multiply this

To calculate the total amount available after 11 years when $75,000 is invested at an interest rate of 5.2%, the future value of the investment can be determined 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 (the initial amount of money).

  • ( r ) is the annual interest rate (decimal).

  • ( n ) is the number of years the money is invested or borrowed.

In this case:

  • ( P = 75,000 )

  • ( r = 5.2% = 0.052 )

  • ( n = 11 )

Plugging the values into the formula:

[ A = 75,000(1 + 0.052)^{11} ]

First, calculate ( (1 + 0.052) ):

[ 1 + 0.052 = 1.052 ]

Next, raise this result to the power of 11:

[ 1.052^{11} \approx 1.643619 ]

Now, multiply this

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