Question

Rodrigo puts $200.00 into an account to use for school expenses. The account earns 9%interest, compounded annually. How much will be in the account after 4 years?Round to nearest cent

Answer 1

Given:

Rodrigo puts $200.00 into an account to use for school expenses.

So, P = 200

The account earns 9% interest

so, r = 9% = 0.09

compounded annually ⇒ n = 1

We will find the balance after 4 years ⇒ t = 4

We will use the following formula:

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

Substitute with the given data:

`A=200\cdot(1+(0.09)/(1))^(1\cdot4)=200\cdot1.09^4=282.3163`

Rounding to the nearest cent

so, the answer will be the balance after 4 years = $282.32