Grace opened a savings account and deposited 300.00 as principal. The account earns 4% interest, compounded annually. What is the balance after 5 years?

Solution

Solution

Amount : 365

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.04}{1})^{1 \cdot 5}

300 (1 + \frac{0.04}{1})^{1 \cdot 5} = 364.99587 \dots

Round to the nearest hundredth:

365

Amount : 365

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