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Ashley deposits $3,900 every year into an account earning an annual interest rate of 7.2% compounded annually. How much would she have in the account after 11 years, to the nearest dollar?

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Final answer:

Ashley would have approximately $7433 in the account after 11 years.

Step-by-step explanation:

Ashley deposits $3,900 every year into an account earning an annual interest rate of 7.2% compounded annually. To calculate how much, she would have in the account after 11 years, we can use the formula for compound interest:

A = P (1 + r/n)nt

Where:

  • A is the future value of the account.
  • P is the principal amount, which is $3,900
  • r is the annual interest rate, which is 7.2%
  • n is the number of times interest is compounded per year, which is 1
  • t is the number of years, which is 11

Plugging in the values, we get:

A = 3900(1 + 0.072/1)1*11

Simplifying the equation:

A = 3900(1.072)11

Calculating the future value using a calculator, Ashley would have approximately $7433 in the account after 11 years.

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