Question

Chris placed $7400 in a savings account which compounds interest annually at a rate of 5.7%. How much will he have in the account after 4 years? Round your answer to the nearest whole number. Do not include a $ in your answer.

Answer 1

Chris will have 9237 dollars in the account after 4 years.

Step-by-step explanation

The total amount of money earned, A, on a particular amount of money (P) after t years, at a compound interest of r%, is given as

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

For this question

P = Original amount saved up = 7400 dollars

r = compound interest rate = 5.7%

t = 4 years

`\begin{gathered} A=7400(1+0.057)^4 \\ A=7400(1.057)^4 \\ A=7400(1.248) \\ A=9237.015=9237\text{ dollars} \end{gathered}`

Hope this Helps!!!