Question

Find the total amount in the compound interest account $2650 is compounded annually at a rate of 11% for 1 year

Answer 1

The compound interest formula is:

`A\text{ = P}(1+i)^t`

where:

A is the final amount including the principal

P is the principal amount

i is the interest rate (as a decimal)

t is time in years

Replacing with P = $2650, i = 0.11, and t = 1, we get:

A = 2650*(1 + 0.11)

A = 2650*1.11

A = $2941.5