Question

Quinn put $450 in a savings account that earned 3.5% interest per year. How much money would Quinn have after 2 years?

a) $31.50
b) $3,600
c) $765
d) $481.50

Answer 1

Quinn would have $481.05 after 2 years.

Step-by-step explanation:

To calculate the amount of money Quinn would have after 2 years, we can use the formula for compound interest:

Final Amount = Principal Amount x (1 + Interest Rate)^Number of Years

In this case, Quinn initially put $450 into the savings account, and the interest rate is 3.5%. Plugging in these values, we get:

Final Amount = $450 x (1 + 0.035)^2

Final Amount = $450 x (1.035)^2

Final Amount = $450 x 1.071225

Final Amount = $481.05

Therefore, Quinn would have $481.05 after 2 years. The correct option is d) $481.50.