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You deposit $575 into savings account that earn 4.6% interest compounded annually. Use a calculator find the new balance of tr account after 4 years. Round your answer to the nearest cent.

User Ed Mazur
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1 Answer

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Final answer:

To find the new balance of the account after 4 years with compound interest, use the formula A = P(1 + r/n)^(nt), where A is the future balance, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal is $575, the interest rate is 4.6%, and the interest is compounded annually. The new balance after 4 years is approximately $668.81.

Step-by-step explanation:

To find the new balance of the account after 4 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the future balance, P is the principal (initial deposit), r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, the principal is $575, the interest rate is 4.6%, and the interest is compounded annually.

So the new balance of the account after 4 years is:

A = 575(1 + 0.046/1)^(1*4)

A = 575(1.046)^4

A ≈ $668.81 (rounded to the nearest cent).

User Ablopez
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