Question

5. Find the balance in the account to the nearest whole dollar: $2500 principal earning 3%, compounded annually, after 4 years

Answer 1

In the formula, let p = 2500, r = 0.03 and t = 4. See picture.

Answer 2

Answer: The balance in the account to the nearest whole dollar after 5l4 years = $ 2814

Explanation:

Principal = $ 2500

Rate of Interest = 3% compounded annually

Time = 4 years

If principal be p, rate of interest be i and time be t , then Amount after t years is given by P × ( 1 + i/100 )^t

So, amount after 4 years = 2500 × ( 1 + 3/100)^4

= 2500 × (1.03)^4

= 2500 × 1.1255

= 2814 ( rounded to nearest whole dollar )

The balance in the account to the nearest whole dollar after 4 years = $ 2814

Hope it helped..!!

Thank you :)