Question

Lorena deposited 2372 into an account that earns 4.5 % interest which is compounded once a year how much money will lorena have in the account in 20 years

Answer 1

Lorena deposited $2372 into an account that earns 4.5% interest which is compounded once a year. How much money will Lorena have in the account in 20 years?

=2372*1.045^20 = $5,720.59

Answer 2

5720.59

Explanation:

Since, the amount formula in compound interest,

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

Where, P is the principal amount,

r is the rate per period,

t is the number of periods,

Here,

P = 2372,

r = 4.5% = 0.045,

t = 20 years,

Thus, the amount of money after 20 years would be,

`A=2372(1+0.045)^(20)`

`=2372(1.045)^(20)`

`=5720.58566691`

`\approx 5720.59`