Question

Ian invested $1,315 in a savings account which earns 2.86% interest compounded quarterly. What will the account be worth in nine years

Answer 1

In 9 years, the account will be worth $1699.48

Explanation:

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Ian invested $1.315 in savings account which earns 2.86% interest compunded quaterly.

The ammount of money the account will be worth is given by the formula:

`A = P(1 + ([(r)/(4))/(100) )^4n`

where r: Rate of annual interest = 2.86%

n: the number of years = 9

P= Principal ammount = $1315

Then A= $1699.48