Question

What is the total value of an account with a $235 initial deposit that is compounded annually at 4.5% for two years?

1) $256.15

2) $244.40

3) $245.58

4) $256.63

Answer 1

the answer is option 1
.
hope this helps again lol
.
Zane

Answer 2

The compound interest formula is:

Amount = Principal ( 1+ rate/number of compounds) ^ number of compounds*number of years

Filling in the given information:
Amount = 235 * (1+(0.045/1)^1*2

Amount = 235 * (1.045)^2

Amount = 235 * 1.092025

Amount = 256.63

The answer is number 4