Question

Charlotte has $6,367 in a savings account. The interest rate is 14%, compounded annually.To the nearest cent, how much will she have in 4 years?

Answer 1

Given the savings account, and solve for the interest:

Principal = $6,367

Interest rate = 14%

time = 4years

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

First, convert R as a percent to r as a decimal

r = R/100

r = 14/100

r = 0.14 rate per year,

Then solve the equation for A

`A=P(1+(r)/(n))^(nt)`
`\begin{gathered} A=6367(1+(0.14)/(1))^((1)(4)) \\ A=6367(1+0.14)^4 \\ A=10753.61 \end{gathered}`

A = $10,753.61

Therefore the correct answer is $10,753.61 (nearest cent)