Question

Mr Wilinks deposited $1,500 in a new account at his bank. The bank pays 2.5% interest compounded annually on his account. Mr Wilinks makes no additional deposits or withdrawals. What is the balance of the account at the end of 4 years?

Answer 1

`\begin{gathered} (2.5)/(100)*1500=(3750)/(100)=37.5 \\ (2.5)/(100)*1537.5=(3843.75)/(100)=38.4375 \\ (2.5)/(100)*1575.9375=(3939.84375)/(100)=39.3984375 \\ (2.5)/(100)*1615.3359375=(4038.33984375)/(100)=40.3833984375 \\ \\ \text{account balance for 4 years = 1500 +}40.3833984375+39.3984375+38.4375+37.5 \\ \text{balance = }1655.71933594\text{ dollars} \end{gathered}`