Question

Suppose deshaun places $5500 in an account that pays 9% interest compounded each year. assume that no withdrawals are made from the account.

1. find the amount in the account at the end of 1 year.
2. find the amount in the account at the end of 2 years.

Answer 1

answers below

Explanation:

N = A (1 + increase) ^n

Where N is future amount, A is initial amount, increase is percentage increase/decrease, n is number of mins/hours/days/months/years.

1) N = 5500(1 + 0.09)^1

= $5995.

2) N = 5500(1 + 0.09)^2

= $6534.55