Question

Mia deposited $1,200 in a new account in January 2007 that earns 3% interest compounded annually. Assuming there are no other deposits or withdrawals, find the total balance in the account in January 2019.

Answer 1

Okay, here are the steps to find the total balance in Mia's account in January 2019:

Mia deposited $1,200 in January 2007. This is the initial principal balance.

The interest rate is 3% per year, compounded annually.

In January 2008, the balance will be $1,200 * 1.03 = $1,236. (Interest is 3% of $1,200)

In January 2009, the balance will be $1,236 * 1.03 = $1,273.96

In January 2010, the balance will be $1,273.96 * 1.03 = $1,316.59

In January 2011, the balance will be $1,316.59 * 1.03 = $1,362.81

In January 2012, the balance will be $1,362.81 * 1.03 = $1,411.59

In January 2013, the balance will be $1,411.59 * 1.03 = $1,463.72

In January 2014, the balance will be $1,463.72 * 1.03 = $1,518.23

In January 2015, the balance will be $1,518.23 * 1.03 = $1,574.97

In January 2016, the balance will be $1,574.97 * 1.03 = $1,634.92

In January 2017, the balance will be $1,634.92 * 1.03 = $1,697.05

In January 2018, the balance will be $1,697.05 * 1.03 = $1,761.44

In January 2019, the balance will be $1,761.44 * 1.03 = $1,828.78

Therefore, the total balance in Mia's account in January 2019 is $1,828.78

Explanation: