Subjects finance

Compound Interest F64519

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Compound Interest F64519


1. **State the problem:** We need to find the total value of an investment using the compound interest formula with the given values: principal $P=1920$, annual interest rate $r=1.75\%$, compounding frequency $m=26$ times per year, and time $t=9$ years. 2. **Formula:** The compound interest formula is: $$ A = P \left(1 + \frac{r}{100m}\right)^{mt} $$ where $A$ is the amount after $t$ years. 3. **Substitute the values:** $$ A = 1920 \left(1 + \frac{1.75}{100 \times 26}\right)^{26 \times 9} $$ 4. **Calculate the inside of the parentheses:** $$ 1 + \frac{1.75}{2600} = 1 + 0.0006730769 = 1.0006730769 $$ 5. **Calculate the exponent:** $$ 26 \times 9 = 234 $$ 6. **Calculate the total amount:** $$ A = 1920 \times (1.0006730769)^{234} $$ 7. **Evaluate the power:** $$ (1.0006730769)^{234} \approx 1.1667 $$ 8. **Multiply to find $A$:** $$ A = 1920 \times 1.1667 = 2240.06 $$ **Final answer:** The total value after 9 years is approximately **2240.06**.