Suppose there is 4500 in a bank account at an interest rate of 11% compounded each year.Find the amount owed at the end of 2 years. Do not do any rounding

Solution

Solution

Amount : 5544.45

Solution steps

Translate the problem into an equation:

A = 4500 (1 + \frac{0.11}{1})^{1 \cdot 2}

4500 (1 + \frac{0.11}{1})^{1 \cdot 2} = 5544.45

Amount : 5544.45

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