Question

NEED ASAP PLEASE HELP!!!! An employee deposits $400 of their pay check into an investment account that earns 2.6% interest annually. No withdrawals or deposits are made over a 6 year period. Find the value of the account in 2 years

Answer 1

The amount in the account after 2 years is $421.04

Explanation:

Given as :

The principal deposited into account = p = $400

The rate of interest applied = r = 2.6%

The time period = t = 2 year

Let The amount for 2 years in the account = $A

From Compound Interest method

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, $A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, $A = $400 ×
`(1+(\textrm 2.6)/(100))^(\textrm 2)`

Or, $A = $400 × (1.026)²

Or, $A = $400 × 1.0526

∴ A = $ 421.04

So, The amount = A = $421.04

Hence The amount in the account after 2 years is $421.04 Answer

Answer 2

$420.8

Explanation:

An employee deposits $400 of their paycheck into an investment account that earns 2.6% interest annually.

We assume that the investment account gives a simple interest against the deposits.

If there is no withdrawals or deposits in the account other than this, then after 2 years the sum in the account will be

`400(1 + (2.6 * 2)/(100)) = 420.8` dollars (Answer)