Question

Suppose that $9500 is placed in an account that pays 4% interest compounded each year.

Assume that no withdrawals are made from the account.
Follow the instructions below. Do not do any rounding.

(a) Find the amount in the account at the end of 1 year.

(b) Find the amount in the account at the end of 2 years.

Answer 1

Your equation will be 9500(1+.04)^t, all you have to do is plug in the years into t and you will get your answer.