102k views
2 votes
How much was invested into an account with a balance of $166000 invested at 2.55% for $16 years?

User AppSolves
by
8.1k points

1 Answer

1 vote

Final answer:

To find the amount invested into an account with a balance of $166,000 invested at 2.55% for 16 years, use the formula for compound interest. Final balance is ≈ $250,092.82

Step-by-step explanation:

To find out how much was invested into an account with a balance of $166,000 invested at 2.55% for 16 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the final balance, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Plugging in the values for this question, we have:

A = 166,000(1 + 0.0255/1)^(1*16)

A = 166,000(1.0255)^16

A ≈ $250,092.82

User Marsilinou Zaky
by
7.2k points