Question

if the APY of a savings account is 2.9%, and if the principal in the savings account was $2600 for an entire year, what will the balance of the savings account be after all the investments is paid for the year?

Answer 1

In order to solve this problem we will simply need to use the formulas required to obtain the total balance of the saving account after all the investments are paid for the year.

Answer:
Balance after 1 year = Principal + Interest for 1 year
Interest for 1 year = P*r*t = 2600*2.9%*1 = 75.4
Therefore, Balance after 1 year = 2600 + 75.4 = 2675.4

I hope it helps, Regards.

Answer 2

$2,600 x 2.9 % = $ 75.4

After all being paid, the balance would be :

$ 2,600 + $ 75.4 = $ 2,675.4

hope this helps