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katie placed $2500 in a savings account compounded annually at 1.75%. what is the value of her account after 4 years?

1 Answer

5 votes

We can solve this question using the formula for compound interest:


F=P\cdot(1+i)^n

F = ?

P = $2500

i = 1.75

n = 4

Then, we have:


F=2500\cdot(1+(1.75)/(100))^4\Rightarrow F=2679.6475\Rightarrow F=2679.65

The value of her account after 4 years is about $2679.65.

User Jimm
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