a principal of $2700 is invested at 5.25% interest, compounded annually. how much will the investment be…

Explanation:

Step1: Identify the 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 form

Given $r = 5.25%=\frac{5.25}{100}=0.0525$, $P=$2700$, and $t = 7$ years.

Step3: Substitute the values into the formula

$A=2700\times(1 + 0.0525)^7$. First, calculate $(1 + 0.0525)^7$. $(1 + 0.0525)^7=1.0525^7\approx1.43997$. Then, $A = 2700\times1.43997\approx3887.92$.

Step4: Round the answer

Rounding $3887.92$ to the nearest dollar gives $3888$.

Answer:

$3888$