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Ava puts $400.00 into an account to use for school expenses.The account earns 12percent interest ,compuonded annualy.How much will be in the account after 9 years?

1 Answer

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Answer:$1109.23 will be in the account after 9 years

Explanation:

Initial amount deposited into the account is $400 This means that the principal

P = 400

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 12%. So

r = 12/100 = 0.12

It was compounded for 9 years. So

n = 9

The formula for compound interest is

A = P(1+r/n)^nt

A = total amount in the account at the end of t years. Therefore

A = 400 (1+0.12/1)^1×9

A = 400(1.12)^9 = 1109.23$

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