Question

Suppose Kala places $9500 in an account that pays 15% interest compounded each year. Assume that no withdrawals are made from the account. find the ampunt for one year

Answer 1

To find the amount in the account after one year, we can use the formula for compound interest:

A = P * (1 + r/n)^(nt)

where:
A = the amount in the account after t years
P = the principal amount (9500)
r = the interest rate as a decimal (0.15)
n = the number of times the interest is compounded per year (1 in this case, since it's compounded once a year)
t = the number of years (1)

Plugging in the values:

A = 9500 * (1 + 0.15/1)^(1 * 1)
A = 9500 * 1.15
A = 10,925

So after one year, the amount in the account would be $10,925.