Question

Julie opens a retirement account, starting with 1,300, that earns an annual

interest rate of 4.5%, compounded annually. What is Julie’s account balance
after 15 years? Round your answer to the nearest dollar.
Use A = P(1 + r)t

Answer 1

$20377.50

Explanation:

A = P(1 + r)t

P = 1300

r = 4.5% = 0.045

t = 15 years

Let's solve

A = 1300(1 + 0.045)15

A = 1300(1 .045)15

A = $20377.50