181k views
1 vote
An initial investment of $1000 is appreciated for 4 years in an account that earns 4% interest, compounded annually. Find the amount of money in the account at the end of the period.

User Ramdhas
by
2.9k points

1 Answer

3 votes

Answer: $116.99

Explanation:

By using compound interest formula which said:

A = P ( 1 + r/n )^(n×t)

P=Principal= 1000

r=rate=4/100

n=1

t= 4

Apply the above formula

A = P ( 1 + r/n )^(n×t)

A = 1000(1 + 0.04/1)^(1 × 4)

A= 100(1.04)^4

A= 100 × 1.17

A = 116.99

User MotherDawg
by
3.0k points