Question

2. An account is opened with $28000 earning12% interest compounded yearly. What is thebalance in the account after 4 years?

Answer 1

The principal is $28000 with rate 12% compounded yearly .

To determine the balance after 4 years,

`SI=(P* R* T)/(100)`
`SI=(28000*12*4)/(100)`
`SI=13440`

The balance in the account after 4 years is the sum of principal and simple interest.

`A=\text{ 28000}+13440`
`A=41440`

Thus, the balance in the account after 4 years is 41440 dollar.