Question

Alice placed $1,900 in a savings account which earns 2.2% interest, compounded every year. how much will she have in the account after 5 years. round your answer to the nearest dollar. do not round until you have calculated the final answer.

Answer 1

Using the formula for compound interest, Alice will have approximately $2,107 in her savings account after 5 years, with an initial deposit of $1,900 at an interest rate of 2.2%, compounded annually.

Step-by-step explanation:

Alice placed $1,900 in a savings account with an annual compound interest rate of 2.2%. To calculate the amount in her account after 5 years, we use the formula for compound interest: A = P(1 + r/n)^(nt). Here, 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 (in decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.

In Alice's case, P = $1,900, r = 2.2% or 0.022, n = 1 (since the interest is compounded annually), and t = 5 years.

So the calculation will be: 1,900(1 + 0.022/1)^(1*5) = 1,900(1 + 0.022)^5 = 1,900(1.022)^5.

After calculating this, Alice will have approximately $2,107.24 in her account after 5 years. Since we round to the nearest dollar, the final balance would be $2,107.

Let's give you a multiple-choice answer:

1. 
   
3. 
   
5. 
   
7. 
   

The correct answer is (b) $2,107.