SOLUTION: One hundred dollars is invested at 12% interest compounded annually. Determine how much the investment is worth after 1 year.

Question 549165: One hundred dollars is invested at 12% interest compounded annually. Determine how much the investment is worth after 1 year.

Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Principal P = 100
Amount= A
years=n 1
compounded 1 times a year t
Simple interest & compound Interest for first year are same
Rate = 12.00 0.12
Amount =P*((n+r)/n)^n*t

Amount =100 *( 1 + 0.12 )^ 1 * 1
Amount =100*(1+0.12)^1
100*(1.12)^ 1
Amount = 112

RELATED QUESTIONS
One thousand dollars is invested at 8% interest compounded annually. Determine how much... (answered by jim_thompson5910)

One hundered dollars is invested at 7.2% interest compounded annually. Determine how... (answered by checkley77)

one thousand dollars is invested at 12% interest compounded annually. determine how much... (answered by jim_thompson5910)

one thousand dollars is invested at 12% interest compounded annually. determine how much... (answered by bucky)

A principal of is invested at interest, compounded annually. How much will the... (answered by saifoo.khan)

If $4,000 is invested at 5% interest, compounded annually, how much will the investment... (answered by lynnlo)

A principal of $3000 is invested at 6% interest, compounded annually. How much will the... (answered by rfer)

please help. one thousand dollars are invested at 8% interest compound quarterlly.... (answered by rfer)

A principal of $4100 is invested at 8.25% interest, compounded annually. How much will... (answered by Cromlix)