Alexa is saving up money to buy a car. Alexa puts 5,391.00 into an account which earns 2% interest, compounded annually. How much will she have in the account after 2 years?

Solution

Alexa is saving up money to buy a car. Alexa puts 5, 391.00 into an account which earns 2% interest, compounded annually. How much will she have in the account after 2 years?

Solution

Amount : 5608.8

Solution steps

Translate the problem into an equation:

A = 5391 (1 + \frac{0.02}{1})^{1 \cdot 2}

5391 (1 + \frac{0.02}{1})^{1 \cdot 2} = 5608.7964

Round to the nearest hundredth:

5608.8

Amount : 5608.8

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