Question

Isabelle deposited $4,020 in a savings account earning 13% interest, compounded annually.To the nearest cent, how much will she have in 4 years?

Answer 1

For this case we can use the following formula:

`A=P(1+(r)/(n))^(nt)`

Where P= 4020, r= 0.13 and n = 1, t= 4 years

Then we can replace and we got:

`A=4020(1+(0.13)/(1))^(1\cdot4)=6554.50`

Rounded to the nearest cent would be:

A= 6554.50$

Part 2

For this case we can use this formula:

P= Po (1+r)^t

Where Po = 174300, r= 0.15 and t= 9 years

We can replace and we got:

P= 174300 (1+0.15)^9 =613165.8

Then the answer would be 613165.8 tons