Question

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 2 years?

Answer 1

$511.575

Explanation:

Given data

P=$475

R=3.8%

T= 2 years

Compound interest

A=P(1+r)^t

substitute

A=475(1+0.038)^2

A=475(1.038)^2

A=475*1.077

A=511.575

Hence the final amount is $511.575