Popular >

You deposit 200 in an investment account that earns 4.5% annual interest compounded annually. You make no additional deposits or withdrawals. What is the balance of this account after 8 years?

Solution

Solution

Amount : 284.42

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.045}{1})^{1 \cdot 8}

200 (1 + \frac{0.045}{1})^{1 \cdot 8} = 284.42012 \dots

Round to the nearest hundredth:

284.42

Amount : 284.42

Popular Examples

A certain number plus 12 gives a result of 34.Sam is 4 year younger than Amy. 5 years ago he was half her age. How old are they now Rosanne is saving up money to buy a car. Rosanne puts 7,175.00 into an account which earns 7% interest, compounded quarterly. How much will she have in the account after 10 years?A finance company charged a loan of RM3,000 at a simple interest of 12% per year. If the interest paid was RM972, how long was the term of the loan?three times a number is 66 more than twice the number