Answer: the value of the investment would be $65307 in 10 years
Explanation:
Initial amount that Lee invested is $23000 This means that the principal is
P = 23000
It was compounded annually. This means that it was compounded once in a year. So
n = 1
The rate at which the principal was compounded is 11%. So
r = 11/100 = 0.11
The duration of the investment is 10 years, So
t = 10
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 23000 (1+0.11/1)^1×10
A = 23000(1.11)^10 = $65307
