Question

Isabella invested $1300 in an account that pays 4.5% compounded annually. Assuming no deposits or withdrawals are made , find how much money Isabella would have in the account 14 years after her initial investment . Round to the nearest tenth.

Answer 1

$2,407.5

Explanation:

To solve this question, we will use the formula for calculating the amount formula as shown;

A =P(1+r)^n

Given that;

P = #$1300

r = 4.5% = 0.045

t = 14years

Substitute

A = 1300(1+0.045)^14

A = 1300(1.045)^14

A = 1300(1.8519)

A = 2,407.5

Hence Isabella would have $2,407.5 in her account after 14years