Question

Ryan deposited $6,700 into an account at the Town Bank, earning 3.4% interest compounded annually. He made no deposits or withdrawals. Write and solve the equation to find the amount of money in his account after 4 years. Round to the nearest cent.

Answer 1

Answer: The amount of money in his account after 4 years = $7,658.73

Explanation:

If interest is compounded annually, then formula to compute amount :

`A=P(1+r)^n`, where P+ principal value, r= rate of interest, n= time ( in years).

As per given,

P= $6700 , r = 3.4% =0.034, n =4

`A=6700(1+0.034)^4\\\\=6700(1.034)^4\\\\=6700(1.14309455234)\approx7658.73`

Hence, the amount of money in his account after 4 years = $7,658.73