Answer:
Explanation:
A = P(1 + r/n)^(nt)
Where:
A is the balance after the given time period,
P is the initial deposit,
r is the interest rate (expressed as a decimal),
n is the number of times the interest is compounded per year, and
t is the number of years.
In this case, the initial deposit is $450, the interest rate is 8.5% (or 0.085), the interest is compounded annually (n = 1), and the time period is 9 years (t = 9).
Substituting these values into the formula, we have:
A = 450(1 + 0.085/1)^(1*9)
Simplifying the expression within the parentheses:
A = 450(1.085)^9
Calculating the value inside the parentheses:
A = 450(1.949005)
Multiplying:
A ≈ 876.552
Therefore, the balance after 9 years will be approximately $876.55