One of Krista’s classmates, Steven, has also been saving. His parents opened a compound interest account for him when he was a baby. They made an initial investment of 500 and the account had a 2.5% interest rate. How much more money does Steven have in his account than Krista has in her account, after 18 years?

Solution

Solution

Amount : 779.83

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.025}{1})^{1 \cdot 18}

500 (1 + \frac{0.025}{1})^{1 \cdot 18} = 779.82935 \dots

Round to the nearest hundredth:

779.83

Amount : 779.83

Popular Examples

One number is three more than a second number. Four times the first is 2 less than 5 times the second. Find the numbers. Let x represent one number and y represent the second number.The quotient of a number x and nine is six.the different of a number x multiplied by itself and 65 is 10 fourteen fewer than a number some number minus-17