Final answer:
The balance in Dominic's savings account after 4 years with a principal deposit of $200.00 and a 15% annual compound interest rate would be $349.80. This is calculated using the compound interest formula A = P(1 + r/n)^(nt).
Step-by-step explanation:
The balance in Dominic's savings account after 4 years, with a principal deposit of $200.00 and an annual compound interest rate of 15%, can be calculated using the compound interest formula:
A = P (1 + r/n)^(nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per unit t.
- t is the time the money is invested for, in years.
For Dominic's account:
- P = $200
- r = 15% or 0.15
- n = 1 (since it is compounded annually)
- t = 4 years
Plugging these values into the formula, we get:
A = $200 (1 + 0.15/1)^(1*4)
A = $200 (1.15)^4
A = $200 * 1.74900625
A = $349.80
Therefore, the balance in Dominic's savings account after 4 years will be $349.80.