Question

Kamal invested $1200 in a savings acc paying 1.8% per yr compound interest.

he left the money in the acc for 5 yrs.

what is the amount of money in the acc at the end of 5 yrs???
give the ans with working and to the nearest cent

Answer 1

A = $1311 and 96cents

Explanation:

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

P = $1200

r = 1.8% = 0.018

n = 1 (compounded yearly)

t = 5

`A = 1200(1 + 0.018)^5 = 1200 *(1.018)^5 = 1311. 96`