Mike opened a savings account and deposited 200.00 as principal. The account earns 11% interest, compounded annually. What is the balance after 9 years?

Solution

Solution

Amount : 511.61

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.11}{1})^{1 \cdot 9}

200 (1 + \frac{0.11}{1})^{1 \cdot 9} = 511.60738 \dots

Round to the nearest hundredth:

511.61

Amount : 511.61

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