Serenity invested 16,000 in an account paying an interest rate of 4.5% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 9 years?

Solution

Serenity invested 16, 000 in an account paying an interest rate of 4.5% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 9 years?

Solution

Amount : 23777.52

Solution steps

Translate the problem into an equation:

A = 16000 (1 + \frac{0.045}{1})^{1 \cdot 9}

16000 (1 + \frac{0.045}{1})^{1 \cdot 9} = 23777.52224 \dots

Round to the nearest hundredth:

23777.52

Amount : 23777.52

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