45.4k views
2 votes
Charlotte has $6,367 in a savings account. The interest rate is 14%, compounded annually.To the nearest cent, how much will she have in 4 years?

1 Answer

1 vote

Solution

Given the savings account, and solve for the interest:

Principal = $6,367

Interest rate = 14%

time = 4years


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

First, convert R as a percent to r as a decimal

r = R/100

r = 14/100

r = 0.14 rate per year,

Then solve the equation for A


A=P(1+(r)/(n))^(nt)
\begin{gathered} A=6367(1+(0.14)/(1))^((1)(4)) \\ A=6367(1+0.14)^4 \\ A=10753.61 \end{gathered}

A = $10,753.61

Therefore the correct answer is $10,753.61 (nearest cent)

User Jzheaux
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories