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

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




5. Find the balance in the account to the nearest whole dollar: $2500 principal earning-example-1
User Probablykabari
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5 votes

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 :)


User RockResolve
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8.0k points