Question

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Suppose that $1600 is deposited into an account that yields 6.5% interest, compounded annually. How
much money will be in that account at the end of 3 years? Round your answer to the nearest penny,
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Answer 1

Answer: 193,272 penny

Explanation:

The formula for calculating the amount could be used , that is

A = P (
`1+ r)^(n)`

A = unknown

p = $1600

r = 6.5%

n = 3 years

Substituting into the formula , we have

A = 1600 (
`1+ 0.065)^(3)`

A = 1600 (
`1.065)^(3)`

A = 1600 ( 1.207949625

A = $ 1932.7197

converting the amount to penny , we will multiply the answer by 100 since 100 penny = 41 , which will give

193,271.94 penny , to the nearest penny we have : 193,272 penny