Question

21. Mickey earned $475 from mowing lawns last summer. He deposited this money in an

account that pays an interest rate of 3.8% compounded annually. What will be his
balance after 4 years rounded to the nearest cent?
a. $827.52
b. $551.42
c. $539.45
d. $646.80
Can you explain to me how to do this also

Answer 1

first, u need to know the formula for compound interest, which is:

`A = P(1 + (r)/(100))^(n)`

where A is the final amount

P- initial amount

r- percent compounded(interest)

and

n- number of years

so

we have

`A = 475(1 + (3.8)/(100))^(4)`

3.8/100 = 0.038

1+0.038 =1.038

1.038^4 = 1.160885573136

475 * 1.160885573136 = 551.4206472396‬

approximately $551.42