Question

Christie put $1000 in a savings account that earns 7.5% interest compounded annually. How much money will she have in the account after 16 years?

A) A = P(1 + r)
B) P = A(1 + r)
C) r = 0.075
D) t = 16

Answer 1

Christie will have approximately $3062.89 in her savings account after 16 years.

Step-by-step explanation:

To find out how much money Christie will have in her savings account after 16 years, we can use the formula for compound interest:

A = P(1 + r)^t

Where:

• A is the amount of money in the account after t years
• P is the initial principal amount (in this case, $1000)
• r is the interest rate (in this case, 7.5% or 0.075)
• t is the time in years (in this case, 16)

Plugging in these values, we get:

A = 1000(1 + 0.075)^16

Calculating this, we find that Christie will have approximately $3062.89 in her savings account after 16 years.