a principal of $2400 is invested at 8.5% interest, compounded annually. how much will the investment be…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, 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 (in decimal form), and $t$ is the number of years the money is invested for.

Step2: Convert the interest rate to decimal

Given $r = 8.5%=0.085$, $P = 2400$, and $t = 12$.

Step3: Substitute values into the formula

$A=2400\times(1 + 0.085)^{12}$. First, calculate $(1 + 0.085)^{12}$. Using a calculator, $(1 + 0.085)^{12}\approx2.658444$. Then, $A = 2400\times2.658444$. $A\approx6380.2656$.

Step4: Round the answer

Rounding $6380.2656$ to the nearest dollar gives $6380$.

Answer:

$6380$